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WHY  THE  SMALL  INVESTOR 

MAKES  MISTAKES'  IN 

MINING  INVESTMENT 


The  Fabulous  Fortunes  Made  in  Mining  Are  Won 
by  a  Different  System  Than  That  Fol- 
lowed by  the  Average  Promoter. 


THE    COMMERCIAL    MINER    SPEAKS    IN 

SELF-DEFENSE— THE     ONLY     TRUE 

WAY  IS  THE  COMMERCIAL  WAY. 


A  $10,000  Book  on  the  Subject  Expressed  FREE 

to  Every  Man  Who  Wants  the  Truth. 

The   West   IS   Weary   of   Being 

Misunderstood. 


It  is  to  be  regretted  that  America's  greatest 
profit  earning  industry  is  obliged  to  open  to  the 
world's  view  the  skeleton  in  its  closet,  and  ex-  ' 
plain  why  so  many  well  intentioned  men  fail  to  ! 
reap  their  proper  share  of  the  golden  wealth ! 
nature  has  placed  in  her  rocky  vaults  for  their 
mining  by  men,  rich  and  poor  alike.  First,  last 
and  all  the  time,  we  advise  men  of  moderate 
means  to  invest  in  mines  and  prospects,  because 
if  the  money  is  properly  applied  the  returns  will 
be  far  greater  than  in  any  other  avenue  of  human 
endeavor.  In  fact  mining  is  the  only  remaining 
avenue  open  for  the  man  of  limited  means,  BUT 
THE  MONEY  INTENDED  FOR  MINES 
MUST  BE  SO  APPLIED.  The  West  wants 
the  East  to  join  hands  in  winning  more  wealth. 
A  desire  to  join  hands  in  eliminating  all  unneces- 
sary risk,  and  -to  do  that  we  must  open  our 
bosom  and  show  the  cancer  that  has  been  eating 
out  the  confidence,  of  those  who  have,  and  still 
believe  in  America's  greatest  industry.  That 
cancer  can  be  cured;  the  people  themselves  can 
do  it.  We  simply  want  to  eliminate  three  pari- 
sites  that  have  been  sucking  the  life  blood  of  the 
industry,  which  is  confidence  in  the  ability  of  min- 
ing to  return  great  profits  at  the  minimum  of 
risk.  The  three  stand  openly  accused:  The 
honest  though  inexperienced  man;  the  dishonest 
tnd  inexperienced  man;  the  dishonest  and  ex- 
perienced man. 


7  ,^ 


Rocks  in  the  Road 
to   Fortune 


or 


The  Unsound  Side   of  Mining 

BY 

HENRY  B.  CLIFFORD 
Practical  Miner  of  ^2  years  experience 


MEMBER  OF 


The  New  York  Consolidated  Stock  Exchange 
The  Los  Angeles  Stock  Exchange 
The  Salt  Lake  Stock  Exchange 
The  Los  Angeles  Chamber  of  Mines 
The  Gilpin  County  Chamber  of  Commerce 


PPtlCE,    SI. 50 


PUBLISHED  BY 

GOTHAM    PRESS 

NEW  YORK 

1908 


COPYRIGHTBD 


ALL   RIGHTS   RBSERVED 


DEDICATION 


nnO  my  companion,  and  partner, 
wKo  roughed  it  with  me  in 
Arizona,  Colorado,  New  Mexico, 
Montana  and  old  Mexico,  who 
braved  the  hardships  of  a  memo- 
rable trip  down  to  the  waters  edge 
in  the  Grand  Canon  of  the 
Colorado,  before  the  Railroad  had 
made  the  route  one  or  modern 
comfort,  who,  without  the  slightest 
regret  would  leave  the  comforts 
of  the  East  for  the  rough  mountain 
fare  of  the  new  districts  of  the 
West,  a  true  American  woman, 
my  wife  Maude,  is  this  volume 
dedicated. 


BIOGRAPHY  OF  THE  AUTHOR. 

"EXPERIENCE  IS  A  BITTER  TEACHER" 


It  may  be  assumed  that,  to  be  successful  in  the 
practical  side  of  mining,  the  operator  must  be  of 
personal  experience  in  many  districts. 

There  are  few  men  better  equipped  to  deal 
justly  with  the  question  of  commercial  mining  than 
the  author  of  "Rocks  in  the  Road  to  Fortune."  That 
the  reader  may  know  that  his  experience  has  not 
been,  and  his  knowledge  is  not,  limited,  we  have 
compiled  the  salient  points  of  his  mining  and  public 
career  covering  nearly  every  district  of  importance 
in  the  United  States  and  Mexico.  The  Gotham 
Press,  having  for  many  years  published  his  works, 
is  competent  to  write  such  a  biography. 


Henry  B.  Clifford  was  born  in  Louisville,  Ky., 
April  28,  1859.  He  is  the  nephew  of  the  late  Nathan 
Clifford,  formerly  Judge  of  the  United  States  Su- 
preme Court,  and,  in  1848,  Minister  to  Mexico.  He 
has  inherited  the  democratic  tendencies  of  his 
famous  uncle. 

For  many  years  Mr.  Clifford  has  been  a  public 
advocate  of  mining,  and  addressed  over  250,000  peo- 
ple upon  the  subject.     In  1874,  as  a  boy  of  15,  he 


II  BIOGRAPHY  OF  THE  A  UTHOR 

was  employed  in  the  post  office  department  in  the 
city  of  Washington.  He  left  that  position  and  went 
to  Colorado,  on  a  United  States  survey,  which 
marked  the  boundaries  of  the  San  Juan  country. 
Being  attracted  to  mining  he  entered  upon  a  prac- 
tical life  in  the  industry. 

For  many  years,  Mr.  Clifford  was  the  business 
associate  in  mining  of  the  late  Colonel  Robert  G. 
IngersoU  from  whom  he  no  doubt  is  indebted  for 
much  of  his  platform  ability. 

His  practical  mining  experience  dates  from 
1875,  when  he  was  employed  on  the  Pride  of  the 
West  Mine,  in  Cunningham  Gulch;  the  Highland 
Mary  Mine;  the  Emma  Dean  Mine,  at  Eureka;  the 
Crown  Point;  the  Susquehanna,  and  other  mines  in 
San  Juan  County,  Colorado.  In  1878,  he  pioneered 
what  is  now  known  as  Rico,  Dolores  County,  Color- 
ado. In  1879,  he  was  engaged  In  making  a  study  of 
the  Silver  Cliff  region  of  Colorado,  and  while  there 
was  employed  as  Superintendent  of  the  Domingo 
mine,  and  gained  experience  as  a  mining  expert  in 
the  celebrated  suit  between  the  Bull  and  the  Do- 
mingo that  was  fought  in  the  courts  of  Rosita.  He 
made  an  investigation  of  the  Bassick  mine,  at  Ros- 
ita, afterwards  going  to  Leadville,  to  study  the 
blanket  formation  that  had  at  that  time  commenced 
to  be  productive. 

In  1880,  he  made  an  examination  of  the  mining 
regions  in  New  Mexico  and  in  the  Chicicahua  Moun- 
tains, Pima  County,  Arizona,  operating  on  the 
Texas  mine.     He  was  also  at  Silver  Citv  on  the 


''EXPERIENCE  IS  A  BITTER  TEACHER''     III 

Seventy-six  mine,  and  was  employed  in  the  Bremen 
mill  at  that  place.  In  1881  he  was  engaged  on  the 
Tough  Nut  and  Grand  Central  properties  at  Tomb- 
stone, Arizona,  and  made  his  first  trip  into  the  State 
of  Sonora  in  the  spring  of  1882,  where  he  was  em- 
ployed by  Gov.  Piscaro  in  mill  construction  near  the 
town  of  Ures.  In  1883  and  1884  he  was  employed 
by  the  now  United  States  Senator,  Stephen  B. 
Elkins,  and  others,  to  make  a  report  on  the  Guana- 
juato mines,  of  Mexico,  and  remained  in  that  Repub- 
lic for  three  years,  making,  however,  trips  to  the 
United  States  in  the  interim.  He  constructed  the 
first  American  stamp  mill  ever  erected  in  the  State 
of  Guanajuato.  His  report  of  that  district  has  since 
been  verified  by  the  success  that  has  followed  the 
American  mining  invasion.  In  1887,  he  became 
associated  with  copper  operators,  and  was  also 
identified  in  the  French  copper  syndicate  movement 
in  America.  He  held  large  interests  in  the  San 
Pedro  copper  mines,  of  New  Mexico,  and  while  there 
formed  the  acquaintance  of  Hon.  William  A.  Clark, 
the  "Copper  King."  In  1892,  while  Colonel  Inger- 
soll  was  engaged  in  the  Davis  will  case  at  Butte, 
Mr.  Clifford  made  a  study  of  the  celebrated  copper 
and  silver  zone  at  Butte,  Montana. 

In  1893,  Mr.  Clifford  prepared,  at  the  request  of 
President  Cleveland,  the  statistics  of  "The  Cost  of 
Producing  Gold  and  Silver,"  an  article  which  has 
added  much  to  his  reputation  as  an  authority  on 
mines  and  mining.  For  years,  he  has  been  a  public 
advocate  of  the  mining  industry,  making  his  first 


IV  BIOGRAPHY  OF  THE  A  UTHOR 

address  on  copper  mines  at  the  Grand  Opera  House, 
Harrisburg,  Pennsylvania,  in  1882.  In  1891  he 
championed  the  interests  of  the  State  of  Washing- 
ton throughout  the  East,  appearing  in  all  the  large 
cities,  and  as  a  recognition  of  his  services  to  Puget 
Sound,  he  was  voted  the  freedom  of  the  city  of 
Spokane.  He  wrote  several  able  articles  on  min- 
ing, and  the  production  of  gold,  for  the  Boston 
Transcript. 

He  made  a  thorough  study  of  Yavapai  County, 
Arizona,  was  successful  in  money  matters  in  that 
vicinity;  and,  later,  became  a  member  of  the  New 
York  Consolidated  Stock  Exchange;  the  Denver 
Stock  Exchange;  the  Los  Angeles  Stock  Exchange 
and  the  Salt  Lake  Stock  Exchange. 

In  1902,  Mr.  Clifford  made  an  examination  of  the 
Cananea  Copper  Belt  in  Sonora,  Mexico.  In  1906, 
he  examined  the  Como  or  South  Comstock  section 
of  Nevada.  In  the  same  year  he  is  accredited  with 
opening  the  second  enrichment  of  Clear  Creek 
County,  Colorado.  In  1907,  he  examined  the 
Montezuma  District  of  Summit  County,  Colorado; 
also  the  district  around  Monarch. 

Hon.  John  P.  Jones,  late  United  States  Senator 
from  Nevada,  the  highest  authority  on  Com- 
stock mining,  classes  him  as  one  of  the  ablest  miners 
in  the  United  States.  His  opinions  are  sought  by 
the  leading  operators  of  this  country,  and  not  even 
his  opponents, — which  every  progressive  man  must 
have, — question  his  remarkable  ability. 

THE  GOTHAM  PRESS, 

New  York. 


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INDEX  TO  CONTENTS: 


THE  PUBLISHER'S  BIOGRAPHY  OF  THE  AUTHOR. 

CHAPTER  I. 

Reasons  for  "Rocks  in  the  Road  to  Fortune."— The  necessity 
for  more  gold.— The  sound  and  unsound  systems  of  mine  financing. 
—The  few  substantial  results  that  follow  sensational  promotions. 

CHAPTER  II. 

The  great  problem  that  faces  industrial  progress,  is  a  larger 
production  of  gold  profitably  won.— The  money  metals  now  in  our 
possession.— More  development  of  our  mineral  lands  imperative.— 
The  misapplication  of  funds  intended  for  mine  development. 

CHAPTER  III. 

The  commercial  miner. — A  distinction  between  the  Eastern  pro- 
moter and  the  Western  miner.— The  three  cardinal  principles  that 
must  exist  to  succeed  in  mining. — The  circulation  of  the  results  of 
bonanza  strikes.— The  world  benefits  by  the  miner's  labors. 

CHAPTER  IV. 

The  importance  of  local  conditions.— No  mine  can  be  very  profit- 
able unless  certain  local  advantages  are  at  hand.— The  actual  needs 
of  a  district.— What  a  low  freight  rate  means  to  a  small  mine;  a 
difference  of  six  dollars  per  ton  in  some  districts.— Low  Smelter 
rates  in  Colorado. 

CHAPTER  V. 

The  prospector  and  his  influence  on  Western  progress. — The 
early  settlers;  their  reputation.— The  prospect  stage  of  the  mine.— 
The  way  veins  were  formed;  the  surface  croppings  and  the  "blind" 
ledge. 

CHAPTER  VI. 
The  value  of  a  prospect;  the  manner  in  which  it  is  developed. 

—The  commercial  character  of  ore  in  prospects.— The  modern  pros- 
pector a  scientist.— How  ore  lies  in  prospects.— Exaggeration  of  the 
value  of  a  prospect. 


CHAPTER  VII. 

Presenting  the  prospect  to  capital.— The  different  values  placed 
upon  prospects  by  the  commercial  and  the  non-commercial  miner. 
—The  right  of  belief.— How  far  can  it  extend.— The  imsound  side  of 
prospect  promotion. 

CHAPTER  VIII. 

The  folly  of  relying  upon  an  assay  in  figuring  the  value  of  a 
prospect.— The  losses  that  follow  development,  or  mill  construction, 
based  upon  assays  of  ore  bodies.— Men  whose  stock  in  trade  is  the 
assay.— The  men  who  do  not  want  to  know  the  actual  value  of  their 
ores. 

CHAPTER  rX. 

Ill-advised  mill  and  smelter  construction.— Heavy  losses  made 
by  the  inexperienced  in  planing  mills  and  smelters  before  their 
ore  bodies  have  been  proven  and  the  character  of  the  mineral 
known.— The  necessity  of  elaborate  mill  tests  before  construction.— 
Has  a  machinery  house  the  right  to  encourage  ill-advise  mechanical 
construction  simply  to  sell. 

CHAPTER  X. 

Equipping  the  mine.— The  needed  mechanical  appliances  for  the 
small,  and  large,  dividend  paying  mines.— The  (difference  between 
equipping  the  small  paying  mine  and  the  large  one.— The  expense 
attached  to  operating  the  famous  California  Mine  of  Virginia  City, 
Nevada.— The  folly  of  opening  a  mine  with  a  few  thousand  dollars, 
the  loss  that  follows  lack  of  capital.— A  trip  through  a  great  com- 
mercial mine. 

CHAPTER  XI. 

Sensational  advertising. — The  men  who  use  their  energies  to 
garble  statements  and  misrepresent  facts.— The  heavy  loss  made 
by  the  public  through  purchasing  stocks  sensationally  promoted 
through  the  press  and  by  circulars.-— The  responsibility  of  the 
newspaper. — The  word  painter  who  by  garbling  of  language  makes 
an  advertisement  say  yes,  when  it  really  means  no.— The  class  of 
promoters  that  use  this  form  of  misrepresentation. — The  man  who 
feels  immune  from  punishment.— Special  news  items. — Mark  Twain 
on  a  sensational  mine  notice. 


CHAPTER  XII. 

Has  exaggeration  any  place  in  mining?— Why  tlie  Western 
gambler  resents  the  intrusion  of  the  unsound  promoter.— The  effect 
of  exaggeration  upon  the  investor  who  does  not  reason.— The  pro- 
moter who  is  immune  from  punishment.— The  author's  opinion  of 
the  unsound  promotor.— The  plea  that  investors  want  to  gamble  not 
borne  out. 

CHAPTER  XIII. 

Examples  of  unsound  advertisements;  a  few  of  the  many;  is  it 
intent  or  ignorance  ?— Commercial  miners  not  responsible  for  fool- 
ish statements.— Men  make  promises  that  when  dissected  show 
either  desire  to  swindle  or  ignorance.— The  public  should  reason 
and  not  conflict  commercial  mining  with  the  unsound  non-com- 
mercial operator. 

CHAPTER  XrV. 

Unsound  dividends.— Premature  dividends.— A  question  as  to 
the  honesty  of  the  men  paying  them.— The  hardship  worked  to 
those  who  believe  mines  are  upon  a  paying  basis  and  buy  the  stock. 
—Examples  of  capitalizaticu.— Methods  of  the  promoter  of  prema- 
ture dividends;  exaggerated  statements.— The  danger  to  the  industiy 
through  injuring  the  reputation  of  the  real  dividend  paying  mine. 

CHAPTER  XV. 

Examples  of  unsound  dividend  payment.--The  ruin  and  sorrow 
that  follows.— The  impression  conveyed  by  mining  advertisements 
promising  dividends.— Corporations  with  prospects  paying  dividends. 
—The  influence  of  those  who  have  been  disappointed  through  pre- 
mature dividends.— Pointed  illustrations  as  to  the  effects  of  buying 
unsound  dividend  stocks. — Guarantees  by  irresponsible  men. 

CHAPTER  XVI. 

The  enormous  commissions  demanded  by  fiscal  agents.— The 
heavy  burden  carried  by  mines  through  their  existence.— The  in- 
ability of  the  commercial  miner  to  meet  the  demands  of  the  agent. 
—The  cases  where  they  have  demanded  excessive  commissions.— The 
amount  of  money  that  goes  in  the  ground.— A  law  covering  the 
amount  of  money  to  be  expended  in  underground  work. — The  re- 
sult of  the  knocker.— Tricks  of  the  commission  broker  to  get  your 
name. 


/ 


CHAPTER  XVn. 

Excuses  that  follow  the  failures.— Men  prepare  excuses,  but 
the  investor  does  not  benefit.— The  many  excuses  that  men  make  to 
angry  stockholders.— Excuses  do  not  relieve  responsibility. 

CHAPTER  XVin. 

The  worthlessness  of  local  endorsement.- Men  who  get  evi- 
dence as  a  protection  to  themselves  in  event  of  failure. — The  char- 
acter of  men  who  will  endorse  anything  for  a  glass  of  whiskey.— 
Evidence  that  has  no  bearing  upon  the  intrinsic  worth  of  the  mine. 

CHAPTER  XrX. 

Abandoned    mines. — The    losses    that    follow    their    reclaiming. 

— Romance  that  is  attached  to  the  lost  mine  or  prospect The  great 

mines  of  Mexico.— The  advance  of  the  Americans  into  old  districts. 
—The  writer's  loss  in  attempting  to  pioneer  Guanajuato,  a  district 
now  successful.— Water  the  enemy  of  the  Mexican.— Leave  the 
abandoned  mine  alone;  sink  a  new  shaft. 

CHAPTER  XX. 

The  experience  of  the  stock  broker  of  vital  importance  to  the 

investor.— A  man  without  practical  experience  has  no  right  to  ad- 
vise in  mining  investments.— Questions  to  ask  the  vendor  of  mining 
shares. — Imperfect  knowledge  of  Eastern  brokers. — Mining  cannot 
be  mastered  through  books.— Do  not  buy  mining  stocks  without 
ascertaining  the  experience  of  your  broker  in  practical  mining. 

CHAPTER  XXI. 

Incorporation  of  the  mine  or  prospect.— The  evils  of  high  capi- 
talizations.—The  penny  stocks.— The  price  the  investor  pays  when 
he  buys  low-priced  shares.— The  great  dividend.— Mines  with  low 
capitalizations.— Questions  to  ask  the  promoter  of  low-priced  stocks. 
—Inexperienced  directors  and  questions  to  propound  to  them. 

CHAPTER  XXII. 

The  poor  man  as  a  mine  investor.- The  reason  he  is  suscep- 
tible to  misrepresentations.— His  opportunities  and  needs.— His 
desire  for  wealth,  the  reason  he  invests  in  prospects. 


CHAPTER  XXIII. 
Speculation  in  shares  of  little  benefit  to  commercial  mining.— 
The  money  does  not  find  its  way  underground.— A  speculator  In 
shares  should  not  class  his  efforts  as  "Mining."— Enormous  losses 
made  by  speculating  in  prospect  shares.— A  list  of  stocks  and  their 
declines.— The  right  to  ask  "Millions"  for  a  listed  prospect.— The 
intrinsic  value  generally  very   little. 

CHAPTER  XXIV. 
Copper  mines.— The  craze  for  copper  shares.— The  unsound 
statements  relative  to  their  product;  value  of  the  ore  and  the  profits 
sure  to  come;  character  of  ore  and  ore  bodies. — A  review  of  copper 
raining  history.— Statement  of  the  depreciation  in  the  value  of  cop- 
per shares.- The  grade  of  ore  of  the  great  praducing  copi)er  mines 
of  the  world.— Capitalization  of  copper  companies. — The  amount  of 
money  it  requires  to  make  a  copper  mine. 

CHAPTER  XXV. 

The  Equitable  way  to  mine.— The  rights  of  the  investor  above 
those  of  the  promoter.— Reasons  why  the  unsound  promoter  remains 
in  the  business. — His  necessities.— The  author's  belief  that  the  in- 
vestor should  have  his  principal  returned. 

CHAPTER    XXVI. 

Ore  shoots.- The  foolish  claims  of  the  inexperienced  relative 
to  ore  in  sight— Different  forms  of  ore  bodies. — How  ore  is  meas- 
ured.—Cross  cut  tunnels;  their  uses  and  frequent  disappointments. 

CHAPTER    XX\TI. 

How  the  big  bonanza  was  found.— The  ore  body  that  gave  to 
the  world  $114,000,000.00.— The  marvellous  rise  of  four  men:  Flood, 
O'Brien,  Mackay   and  Fair.— Possibilities  of  other  bonanzas. 

CHAPTER  XXVIII. 
Great  dividend  mines.— The  future  relations  between  the  miner 
and  the  investor.- Commercial  mining.— Enormous  profit  possibili- 
ties of  co-operation  between  the  Idle  money  of  the  East  and  the 
mines  of  the  West.— The  strides  of  the  lease  system.— The  solving 
of  the  labor  problem  in  mines.- The  future  of  the  mining  industry. 
— A  square  deal  upon  lines  of  truth. 

APPENDIX. 

Glossary  of  mining  terms. 


ROCKS  IN  THE  ROAD 
TO  FORTUNE 


ROCKS  IN  THE  ROAD  TO  FORTUNE. 

BY 

HENRY     B.     CLIFFORD. 


"The  Destroyer  of  weeds,  thistles  and  thorns  is  a 
benefactor,  whether  he  soweth  grain  or  not." 


What  is  here  desired,  is  that  a  great  industry 
may  be  better  understood  by  those  who  haye  for 
years  believed  they  were  mining,  when  in  reality 
they  were  simply  speculating  in  the  most  remote 
forms  of  actual  commercial  operations,  those  an- 
tagonistic to  the  views  of  the  writer,  say  that 
though  evils  do  exist,  that  it  is  not  possible  to  weed 
them  completely  out.  This  may  be  true,  but  per- 
haps this  effort  may  assist.  No  one  ever  really 
thought  that  Kentucky  would  practically  weed  out 
whiskey  drinking. 

There  are  two  ways  to  mine — the  right  way  and 
the  wrong.  Experience  proves  that  the  right,  or 
commercial,  way  has  resulted  in  the  United  States 
making  an  annual  production  of  gold,  silver,  copper 
and  lead  of  nearly  four  hundred  millions  of  dollars, 
and  that  there  is  a  handsome  profit  in  its  extrac- 
tion. A  review  of  what  is  considered  the  wrong  way 

1 


2     ROCKS  FN  THE  ROAD  TO  FORTUNE 

proves  that  it  has  resulted  in  discredit  to  the  indus- 
try, and  sorrow  to  those  who,  believing  the  repre- 
sentations made  by  inexperienced  men,  invested 
that  which  they  could  not  well  afford  to  lose. 

It  may  be  asserted  that  the  system  of  promotion, 
under  which  the  average  Eastern  investor  believes 
he  enters  mining,  is  unsound,  and  does  not  result  in 
the  profits  which  follow  the  efforts  of  commercial 
operators.  One  system  brings  profits  to  many;  the 
other,  profits  to  the  few,  and  bitter  disappointments 
to  the  many. 

If  a  system  is,  by  its  results,  after  years  of  ex- 
perience, shown  to  be  unsound,  the  profits, 
beneficial  to  a  few,  at  the  expense  of  the  many, 
and  the  reputation  of  an  industry  affected 
by  the  results  of  such  a  system,  then  it  is 
the  opinion  of  the  writer  that  the  unsound  sys- 
tem should  be  abolished,  and  another  employed, 
where  the  profits  that  unquestionably  come  from 
mining  may  be  more  equitably  divided.  The  readers 
must  judge  the  author,  and  form  their  own  opinions 
as  to  his  radicalisms  or  Impartialities.  They  will 
remember  that  it  is  the  opinion  of  one  man  here 
expressed,  and  his  arguments  must  be  considered  as 
Huch.  The  writer  is  willing  to  acknowledge  his  own 
faults  and  mistakes.  He  does  not  oppose  the  flota- 
tion of  mines,  or  prospects,  by  men  who  tell  the 
truth.  That  to  which  he  is  opposed  is,  promotions 
by  men  who  are  not  miners,  and  do  not  understand 
the  necessities  of  the  industry,  but  in  bold  adver- 
tisements assume  that  their  advice  is  born  of  exper- 


ROCKS  IN  THE  ROAD  TO  FORTUNE  3 

ience,  when  in  reality  they  know  little  of  the  prac- 
tical side,  and  unblushingly  make  extravagant 
promises,  which  every  commercial  miner  knows  can- 
not, except  by  miracles,  be  kept;  or  promotions  bj' 
men  who,  because  they  have  a  little  smattering  of 
mine  information,  class  themselves  as  experts,  yet 
are  not  sufficiently  experienced  and  seasoned  in  the 
industry,  which  requires  years  of  study  and  sound 
judgment  to  win,  by  steering  clear  of  the  rocks  in 
the  road  to  fortune.  The  author  is  not  infallible — 
having  in  the  past  made  his  own  mistakes,  but  it  is 
by  bitter  experience  that  we  learn.  During  the  days 
when  I  was  susceptible  to  the  excitements  that  fol- 
low the  discovery  of  a  little  rich  ore  on  the  surface, 
before  we  knew  that  every  sliver  in  the  earth  that 
contained  mineral  was  not  a  mine,  when  he  believed 
that  all  men  were  comparatively  honest;  in  the  days 
before  ripened  experience  taught  him  that  there  was 
only  one  way  to  mine,  and  that  was  to  actually  ex- 
tract ore  and  sell  it,  he  made  his  errors.  He  placed 
too  high  valuation,  trusted  too  much  to  others,  with 
failure  as  the  result;  but  with  the  passing  years  and 
closer  associations  with  the  commercial  side  of  the 
industry,  the  trutli  became  plainer,  and  the  rocks 
in  the  road  were  more  readily  avoided,  and  by  now 
asserting  what  I  found  to  be  wrong  is  hoped  to  save 
others  the  experience.  That  there  is  no  personal 
antagonism  is  shown  by  the  absence  of  any  pointed 
reference  to  distinct  man,  mine  or  district. 

Mining  is  a  venture  in  which  men  risk  for  great 
gains,  but  then  men  risk  in  other  ventures,  where 


4     ROCKS  IN  THE  ROAD  TO  FORTUrE 

the  returns  are  much  less,  and  not  as  certain.  But 
it  is  asserted  that  the  risk  in  mining  is  not  as  great 
as  the  general  public  believes,  and  this  belief  has 
been  generated  through  its  losses,  which  would 
have,  in  many  cases,  been  turned  to  profit  had  com- 
mercial mining  been  practiced. 

Out  of  the  thousands  of  investors  that  have  made 
mistakes  in  mining,  there  are  not  many  that  ever 
entered  the  actual  industry.  Their  money  seldom 
found  its  way  west  of  the  Mississippi  river.  They 
invested  in  the  promotion  side,  with  which  the  com- 
mercial miner,  the  man  responsible  for  the  world's 
metallic  output,  had  nothing  in  common. 

The  defenders  of  the  present  system  of  promo- 
tion,— that  is,  sensational  advertising,  promises  of 
quick  and  big  dividends,  guarantee  of_principals, 
etc.,  can  quickly  silence  our  arguments  by  showing 
even  ten  successful  dividend  paying  mines  now  in 
healthy  activity  that  have  resulted  from  the  thou- 
sands of  prospects  incorporated  in  the  last  ten 
years,  publicly  exploited  in  the  press  or  by  extrava- 
gant prospectuses,  in  which  the  people,  eager  to  aid 
in  the  development  of  mining,  and  believing  that 
they  were  in  on  the  legitimate  side  of  metal  extrac- 
tion, through  the  rash  assertions  made,  have  invest- 
ed and  lost  millions  of  dollars;  or,  even  to 
show  us  two  gTeat  mines  that  have  for  three 
years  past  paid,  and  is  to-day  paying  |150,000 
a  year  dividends — and  there  is  a  great  number 
that  made  more  extravagant  promises  than  this 
— or  even  two  of  the  sensationally  promoted  corpo- 


ROCKS  IN  THE  ROAD  TO  FORTUNE  6 

rations  that  have  redeemed  their  marvelous  prom- 
ises of  profits  to  the  extent  of  a  continuous  stream 
of  dividends  equal  to  10  per  cent,  for  the  last 
two  years;  or,  to  show  where  a  guarantee  of  divi- 
dends, or  the  return  of  the  principal,  has  resulted 
as  the  investor  was  led  to  expect.  The  author,  on 
the  other  hand,  can  show  hundreds  of  individual  in- 
stances, where  miners,  working  on  commercial  prin- 
ciples with  limited  capital,  have  swollen  the  annual 
production  of  the  states  and  territories  by  products 
extracted  at  a  profit  with  limited  capital.  On  the 
other  hand,  where  actual  miners  conducted  these 
ventures,  the  loss  has  been  very  limited.  To  my 
critics  it  may  be  said  that  I  am  myself  willing  to 
learn  but  give  me  fact.  By  those,  who  these  views 
displease,  there  may  be  abuse  of  the  author,  but 
the  argument  of  fact  should  not  be  lacking. 

Thjg^ mining  industry  is  one  of  great  profit  and 
^possibilities :  tjiat^is,  the  actual  busmess^^re  ex- 
traction; and  the  aid  of  capital  is  desired  to  make 
larger  productions.  But  I  am  confident  that  the 
sentiment  of  the  commercial  miners  of  this  country 
is  voiced,  when  it  is  stated  that  if  it  is  necessary 
that  the  output  of  the  mineral  industry  can  only  be 
fostered  by  the  tears  of  the  disappointed,  the  suffer- 
ings of  the  widow^s,  or  of  poor  men  who  have  in- 
vested, expecting  fortune,  only  to  find  poverty,  then 
the  quicker  such  "industry"  dies  an  unnatural 
death,  the  better. 

I  expect  criticism  from  those  interested  in  the 
avenue  of  promotion  of  which  we  do  not  approve. 


6     ROCKS  IN  THE  ROAD  TO  FORTUNE 

My  personal  life,  my  mistakes,  and  some  of  my  suc- 
cesses, which  perhaps  are  not  fully  deserved,  are  not 
at  issue.  Abuse  is  not  argument.  I  am  in  favor  of 
the  public  sale  of  Mining  Stocks  to  small  investors. 
Have  sold  them  and  may  again  sell  them,  but  we 
want  to  see  them  sold  on  a  truthful  presentation  of 
facts.  I  state  facts,  and  ask  for  facts.  The  question 
and  issue  are  plainly  stated. 

Do  the  sensationally  promoted  mining  enter- 
prises that  have  filled  the  i3ress  of  the  United  States 
for  over  ten  years  with  glaring  promises  and  appeals 
for  capital  to  invest  in  so  called  mines  give  the  in- 
vestor any  reasonable  profit,  or  add  credit  to  the 
states  and  tenitories  in  which  they  claim  to  oper- 
ate? And  do  these  efforts  result  in  commercial  min- 
ing, where  profit  is  won  from  ore?  Not  a  profit 
taken  from  one  man  to  enrich  another.  Does  the 
money  paid  for  stocks  actually  go  into  underground 
work?  Is  the^s^st^ni  of  heavy  capitalization  and 
the  payment  of  excessive  commissions  the  true  basis 
for  mine  promotion,  and  does  it  result  in  benefit  to 
the  industrv  or  the  investor? 

1  ISnoV  of  hundreds  of  deserving  miners  who 
have  prospects  of  merit,  who  are  willing  to  proceed 
to  develop  them  with  even  as  small  a  sum  as  $5,000, 
but  who  are  unable  to  interest  investors,  for  the 
reason  that  they_cannot  compete  with  the  publijdty 
promoters,  pay  the  excessive  commissions,  or  gain 
tTiT  confidence  of  those  whose  experience  in  mining 
causes  them  to  look  with  distrust  upon  every  man 
seelffng  the  aid  of  capital.  I  look  forward  to  the  day 


ROCKS  IN  THE  ROAD  TO  FORTUNE  7 

when  the  distinction  will  be  drawn  sharply  between 
commercial  mining  and  sensational  prospect  promo- 
tion; when  a  miner  or  stockholder  may  take  his 
collateral  into  a  bank,  and  receive  the  same  consid- 
eration accorded  the  contractor,  merchant,  farmer 
or  railroad  oflQcial.  I  make  especial  reference  to  no 
mine,  district  or  individual.  The  whole  subject  is 
treated  in  the  hope  that  the  readers  of  this  book 
may,  in  a  measure  if  they  believe  my  assertions,  pro- 
tect themselves  from  the  class  that  the  commercial 
miner  considers  the  industry's  greatest  detriment. 


CHAPTER  II. 
THE  PROBLEM  THAT  CONFRONTS  PROGRESS. 

"Everyone  who  has  studied  this  question  knows  that 
ail  of  our  reserve  should  be  in  gold,  for  gold  is  our  standard 
of  value." — Congressman  Fowler,  Chairman  of  the  House 
Committee  on  Banking  and  Currency. 

The  United  States  has  recently  passed  through 
one  of  the  most  dangerous  crises  in  its  history,  in- 
volving a  stringency  in  money  so  wide-sweeping, 
that  for  a  period  the  banks  of  the  entire  nation  vir- 
tually suspended  cash  payments,  and  issued  instead 
artificial  money,  causing  the  middle  class  depositors 
to  become  panic  stricken.  A  crisis  that,  if  un- 
checked, would  have  wrecked  for  a  generation  the 
financial  reputation  of  the  world's  richest  nation. 

The  quotation  cited  is  to  the  writer  the  text  of  a 
subject  which  he  has  long  maintained  is  essential 
to  the  welfare  of  our  country:  the  increased  produc- 
tion of  gold  profitably  mined.  Had  our  banks  ample 
gold,  there  would  have  been  no  wavering  of  con- 
fidence, which  was  the  direct  cause  of  the  strin- 
gency, through  the  hoarding  of  all  kinds  of  money. 
Aptly  has  it  been  stated  that  the  principal  cause  of 
the  panic  was  that  some  one  asked  for  a  "real"  dol 
lar. 

8 


ROCKS  IN  THE  ROAD  TO  FORTUNE  9 

Congressman  Fowler  further  said: 

"We  have  to-day  in  the  banks  of  the  country 
about  $12,000,000,000  of  deposits.  The  banks  hold 
reserves  against  this  fabulous  sum  of  about  $900,- 
000,000.  Of  this  $900,000,000,  about  $200, 000,000  is 
in  bank  notes,  a  mere  credit,  a  mere  promise  to  pay. 
Therefore,  you  will  observe,  that,  approximately, 
one-quarter  of  all  our  deposits,  or  nearly  $3,000,000,- 
000,  is  based  upon  bank  notes,  which  are  in  turn 
based  upon  another  credit,  a  Government  bond, 
which  is  due  in  about  twenty-five  years.  The  depos- 
itors of  this  country  now  have  $12,000,000,000  to 
their  credit  in  our  banks,  and  have  a  right,  and 
should  demand  now,  that  thejreserve  held  to  protect 
their  deposits  should  be  the  real  thing,  gold  coin, 
and  not  credit,  not  national  bank  notes.'' 
""'^^^e  Congress  of  which  Mr.  Fowler  is  a  member, 
and  also  future  sessions,  may  pass  many  emergency 
laws;  but  subterfuges,  while  they  may  retard  for  a 
time  the  inevitable  storm,  unless  the  needed  gold 
actually  exists  in  commercial  form,  there  will 
always  be  that  uncertainty,  which  was  the  real 
cause  of  the  recent  panic.  There  is  only  one  sound 
solution:  we  must  obtain  more  gold.  We  know  that 
other  nations  will  not  lend  us  a  supply  to  meet  tem- 
porary emergencies,  except  at  exorbitant  rates; 
therefore,  the  only  alternative  is  to  more  deeply  ex- 
plore our  mineral  resources.  For  years,  upon  many 
platforms,  the  writer  has  asserted  that  the  annual 
increase  in  our  home  production  of  the  money 
metals  was  not  adequate  to  meet  the  growing  de- 


10    ROCKS  IN  THE  ROAD  TO  FORTUNE 

mands  of  our  wonderfully  increasing;  prosperity,  and 
that  for  awhile  we  could  expand  upon  credit,  just  so 
long  as  the  creditor  did  not  ask  for  payment  in  act- 
ual coin,  but  that,  if  the  creditor,  who  in  America 
is  the  depositor,  should  lose  confidence  in  our  ability 
to  sustain  the  claim  of  a  gold  basis,  then  the  crash 
would  be  as  inevitable  as  the  law  of  gravitation.  For 
Credit  is  the  only  Capital  on  earth. 

First,  the  stringency  of  1893  brought  our  finan- 
ciers to  a  semi-realization  of  this  truth, — but  by 
skillful    bank-piloting,    clearing-house    certificates, 
and  other  forms  of  emergency  money,  we  weathered 
that  storm.     But  this  last  tornado  was  more  far- 
reaching;  the  stringency  was  greater;  and,  call  it 
by  any  name,  there  was  practically  a  total  suspen- 
sion of  both    paper    and    specie    payments  in  New 
York,  Pittsburg,  Kansas  City,  and  Chicago.     Any 
country,  ostensibly  upon  a  gold  basis,  sleeping  in 
security  of  the  people's  confidence,  never  realizes 
the  scarcity  of  gold  or  silver  until  the  demand  for  a 
redemption  of  credits  in  actual  coin.     All  the  laws 
we  can  make  will  not  add  one  dollar  of  gold  to  our 
supply  unless  the  miner  digs  it  from  the  earth,  and 
the  refiners  change  the  raw  material  of  money  into 
the  bars  of  mintable  assay.    There  is  only  one  solu- 
tion to  the  problem  which  confronts  us,  as  well  as 
other  nations.     We  must  mine  more  gold,  and  in 
mining  it,  make  it  profitable  to  those  who  engage  in 
its  extraction;  otherwise  the  miner  or  his  partner, 
capital,  will  not  continue  in  its  labor. 

This  brings  us  to    one  of   the    great    problems 


ROCKS  IN  THE  ROAD  TO  FORTUNE        11 

which  face  the  West:  the  elimination  of  the  unsound 
promotions  which  do  not  mine  profitably,  and  add 
nothing  of  value  to  our  productions.  Yet  do  add  dis- 
credit to  the  man  who  is  actively  engaged  in  com- 
mercial mining. 

The  United  States  is  wonderfully  rich  in  mines, 
of  gold,  silver,  copper  and  lead;  and,  each  year, 
science,  industrial  economics,  and  local  conditions 
make  a  lower  grade  of  ore  profitable.  Considering 
the  money  actually  invested  in  commercial  mining, 
the  profits  it  returns  to  the  investor  are  greater 
than  from  any  other  avenue  of  industry.  Mark  you,  I 
say,  "commercial  mining,"  for  I  do  not  purpose  to 
father  the  element  which,  while  claiming  to  mine, 
does  not.  There  is  little  doubt  of  the  ability  of  our 
mines  to  supply  all  the  gold  the  country  needs,  and 
even  to  help  out  other  nations,  provided  the  commer- 
cial miner  controls  the  mining  end,  and  the  capital 
intended  for  mining  be  actually  so  expended.  The 
problem  is,  how  to  make  its  extraction  profitable  to 
those  who  invest  in  the  venture,  which  is  necessary 
before  gold  can  run  current  in  the  wide  and  sweep- 
ing river  of  trade. 

To  mine  the  needed  gold,  we  must  interest  new 
capital,  for  that  which  is  now  successfully  employed 
in  mining  cannot  be  spared  from  its  field  of  en- 
deavor. The  present  production  must  be  sustained. 
We  must  gain,  not  lose,  while  seeking  to  increase 
our  stores  by  new  ventures.  To  attract  new  capi- 
tal, we  must  offer  profitable  inducements.  If  cap- 
ital, which  is  willing  to  assist  in  mining  new  gold 


12    ROCKS  IN  THE  ROAD  TO  FORTUNE 

and  silver,  meets  with  success,  then  capital  remains 
in  the  industry.  If,  on  the  other  hand,  the  eastern 
investor  meets  with  failure  after  failure,  he,  natur- 
ally, classes  the  extraction  of  metals  with  unprofit- 
able ventures,  and,  withdrawing  his  support,  as  well 
as  the  support  of  his  friends,  progress  is  then 
retarded. 

We  must  have  more  capital  to  open  known  ore 
bodies,  and  establish  mechanical  economies,  to  make 
a  lower  grade  of  ore  valuable.  On  all  legitimately 
employed  capital,  the  industry  can  return  heavy 
profits;  but  there  should  be  a  system  of  investment 
which  should  protect  the  capitalist,  and  cause  his 
money  to  be  actually  employed  in  mining.  It  is 
not  asserted  that  there  is  a  lack  of  actual  invest- 
ment, for  there  is  a  great  and  growing  interest.  The 
people  believe  in  our  mineral  resources,  and  at  every 
opportunity  they  invest  in  what  they  are  told  is 
mining.  If  even  one-half  of  the  money  that  the 
American  buyer  believes  he  is  placing  in  the  legit- 
imate avenue,  was  properly  applied  to  ore  develop- 
ment, upon  commercial  lines,  the  gold  product  of 
our  country  last  year  would  have  been  fully  $20,- 
000,000  greater.  The  practical  miner  does  his  part, 
but  the  non-commercial  miner  shirks  his  responsi- 
bility, and  a  large  part  of  the  money  intrusted  to 
him  seldom  leaves  the  East. 

The  West  wants,  and  is  eager,  to  do  its  part.  It 
invites  capital;  but  it  does  not  wish  to  be  credited 
with  that  which  it  never  receives.  It  does  not  want 
to  be  held  responsible  for  the  errors  of  men  who  are 


R0CK6  IN  THE  ROAD  TO  FORTUNE         13 

speculators,  not  miners.  The  commercial  operator 
rebels  at  being  stigmatized  as  an  undesirable  indus- 
trial citizen,  by  those  who,  thinking  they  are  mining, 
are  simply  gambling,  or  under  the  leadership  of  men 
who  must  be  knaves  or  fools.  The  mistakes  of  the 
East  were,  in  a  large  measure,  the  result  of  unrea- 
sonable rapacity.  Until  the  last  crisis,  the  commer- 
cial miner  was  not  considered  important;  his  mod- 
est efforts — which  did,  however,  result  in  our  great 
metal  product — was  overshadowed  by  the  pompous, 
self-asserting  promoter,  who,  to  gain  his  end,  almost 
destroyed  the  reputation  of  the  American  miner  for 
honest  intentions.  A  commercial  operator,  with  his 
plain  statement  of  facts  regarding  risk  and  profit, 
seemed  so  insignificant  and  uncertain,  when  com- 
pared with  the  bubble-blown  non-commercial 
broker,  with  his  positive  ^'Millions  to-morrow,  for 
Ten  Dollars  To-day,"  that  he  could  not  obtain  any 
courtesy  or  favor:  it  is  believed  that  the  day  has 
come  when  the  investor  is  awake  to  the  fact  that  he 
has  not  yet  met  the  real  miner,  the  producer.  If  the 
writer  can,  by  his  efforts,  assist  in  drawing  the  line 
between  the  commercial  operator  and  the  non- 
commercial vender  of  mining  stocks,  he  will 
feel  that  he  has  done  a  little  for  the  industry 
that  has  been  kind  to  him  for  thirty-one  years. 
Papers  have  offered  me  the  use  of  their  col- 
umns, but  a  paper  article  often  passes  with 
the  day,  the  subject  is  too  vast,  consequently 
this  book.  He  does  not  wish  it  to  be  under- 
stood that  he  is  averse  to  the  sale  of  mining  stock. 


14    ROCKS  IN  THE  ROAD  TO  FORTUNE 

for  he  sells  it  himself.  It  is  realized  that  incorpo- 
ration is  really  the  only  safe  and  sound  method  of 
mining,  for  the  risks  and  benefits  are  scattered 
among  the  many,  as  they  should  be.  The  argument 
is  that  the  money  really  intended  for  mine  develop- 
ment should  actually  be  expended  in  underground 
work  and  needed  equipment,  and  that  men  who 
really  know  should  do  the  mining;  and  where  men 
are  engaged  in  selling  stocks,  they  should  tell  the 
truth,  without  stretching  a  little  fact  to  a  painful 
length,  that  the  buyer  may  know  the  risk  he  is  tak- 
ing, and  be  given  the  personal  right  to,  by  using  his 
own  reason,  determine  if  he  desires  to  speculate  or 
invest  as  the  case  may  be 


CHAPTER  III 
THE  COMMERCIAL  MINER. 

There  are  so  many  different  avenues  called  min- 
ing, by  the  inexperienced — so  many  rainbow  char- 
acters that  claim  association  with  America's  great- 
est industry,  that  the  commercial  miner — the  man 
who  is  actually  responsible  for  our  great  mineral 
output — is  seldom  encountered  by  those  who,  year 
in  and  out,  invest  in  what  they  are  led  to  believe 
are  sound  mining  enterprises. 

The  Western  miner  is  among  the  most  honorable 
nl  Tpen.  He  is  not  to  be  classed  with  those  who  may, 
for  want  of  a  softer  word,  be  termed  the  parasites 
of  this  magnificent  industry.  Commercial  mineri? 
are  those  who  win  fortunes  from  nature's  treasure 
vaults  by  energy  and  hardships,  thus  causing  the 
mining  industry,  by  its  actual  production  of  gold, 
silver,  copper  and  lead  to  be  classed  with  the  back- 
bone of  America's  progress  and  wealth.  Such  men 
have  nothing  in  common  with  those  who  do  most  of 
their  ore  extraction  in  eastern  cities,  through  sen- 
sational paper  promotions.  A  distinction  should 
be  sharply  and  clearly  drawn  between  the  two. 
One  is  a  miner,  who  actually  digs  in  the  earth 
searching  for  and  extracting  metal  ores;  the  other, 

16 


16    ROCKS  IN  THE  ROAD  TO  FORTUNE 

a    private    individual,    who    gives    advice    upon    a 
subject    which    he   has    not    mastered.      The    non- 
commercial miner  reaps  his  profit — through  heavy 
commissions  and  promoter  share  holdings,  which 
they  often  sell  before   the   prospect  has   paid  its 
western    obligations — by    promising    enormous    re- 
turns before  he  begins  to  mine  or  ship  ore.     He 
is    quite   sure    to,    but    does    not.      In    the    great 
majority  of   cases,   while   he   sows,   his   seed   does 
not    ripen    in    the    harvest    that    brings    profits, 
honestly  won  from  nature.    Gold,  silver  and  copper 
miners  are  speculators  in  the  sense  that  coal  oper- 
ators and  oil  drillers  are  speculators.    That  is,  they 
venture  with  nature,  with  a  capital  of  Experience; 
but,   unlike  any  other  industry,  the  wealth  they 
woo,  and  often  win,  is  the  soundest  of  all.     It  is 
imperishable.    The  finder  enjoys  its  possession,  then 
it  passes  along  through  coming  ages,  bringing  hap- 
piness to  countless  thousands.     Fortune  may  give 
vast  stores  of  it  to  one  man,  yet  it  all  belongs  to  the 
world  to-morrow. 

There  are  four  sources  of  wealth:  the  sea,  the 
forest,  the  farm  and  the  mine;  and  of  them  all  that 
of  the  latter  is  more  important;  for  the  product  of 
the  former  three  is  perishable.  With  the  wealth  of 
the  mine,  all  the  others  can  be  purchased  from  other 
nations.  In  fact,  it  may  be  said  that  to  our  minerals 
may  be  attributed  the  unparalleled  progress  of 
America, 

The  precious  metal  extracted  from  mines  is 
nearly  always  in  circulation,  either  through  the  arts 


ROCKS  IN  THE  ROAD  TO  FORTUNE         17 

or  as  money  metals.  The  miner  enjoys  the  satisfac- 
tion of  knowing  that  he  produces  a  new,  clean 
wealth.  Its  possession  does  not  carrj^  the  thought, 
common  to  the  quick  acquirement  of  wealth  in  gen- 
eral speculations,  that  the  holder  is  rich  and  happy 
because  some  other  of  the  human  race  is  poor  and 
sad.  But  even  though  the  miner,  over  night,  springs 
from  poverty  into  a  Croesus,  no  man  is  more  entitled 
to  undisputed  possession  of  his  fortune,  for  it  has 
been  extracted  from  a  source  where  no  wealth 
known  to  man  before  existed.  He  has  won  the  raw 
material  of  money  from  a  source  that  was  hidden 
from  human  eyes,  yet  this  product,  when  manufac- 
tured into  money,  adds  strength  to  nations,  creates 
the  sinews  of  war,  is  the  herald  of  smiles,  the  fore- 
runner of  laughter,  and  the  prosperity  of  the  race. 

The  harder  the  times,  the  more  important  be- 
comes the  miner,  for  his  product  is  the  medicine  that 
cures — if  not  "all  the  ills  that  flesh  is  heir  to" — the 
ills  of  depression:  such  as  the  stringency  of  money, 
which  we  have  recently  experienced.  The  extraction 
of  large  amounts  of  precious  metals  has  frequently 
saved  a  nation's  credit:  and  Credit  is  the  air  of  a 
nation's  lungs:  without  it,  it  stifles,  declines  and 
falls,  as  fell  old  Rome  in  the  days  of  the  degenerate 
Caesars.  It  was  the  discover^'  of  the  Comstock 
Mines,  in  Nevada,  at  an  opportune  time,  that  en- 
abled our  country  to  live  through  the  financial  dis- 
tress which  followed  the  Civil  War. 

The  Eastern  investor  knows  so  little  about  com- 
mercial mining,  or  of  the  miner  who  creates  the 


18    ROCKS  IN  THE  ROAD  TO  FORTUNE 

wealth,  that  it  is  hoped  in  the  future  there  may  be  a 
better  understanding  of  the  industry,  and  of  those 
responsible  for  its  greatness.  This  is  the  author's 
aim.  The  writer  does  not  attempt  to  show  the  little 
he  may  know  of  geology,  by  the  use  of  uncommon 
words  and  phrases,  which  only  those  well  read  in 
the  sciences  comprehend. 

So  many  have  lost  money,  by  following  the 
advice  of  men  who  do  not  know,  or  are  interested 
in  unsound  promotions,  that  it  is  decidedly  of  inter- 
est to  commercial  miners,  who  are  themselves  at 
times  seeking  the  aid  of  capital,  that  the  rocks  in 
the  road,  and  many  of  the  mistakes  of  the  past,  per- 
haps hereafter  may  be  avoided;  and  if  the  investor 
will  reason,  he  may  be  guarded  against  misrepre- 
sentation, and  make  himself  a  fortune,  by  entering 
mining  upon  commercial  lines,  the  same  as  he  would 
enter  any  other  broad  way  of  industry.  To  that 
end  this  is  written,  for  the  plain,  old-fashioned  man 
— young  though  he  may  be  in  years — who  wants 
plain,  old-fashioned  language,  which  he  under- 
stands. This  work  is  not  for  those  who  do,  but  for 
the  thousands  who  do  not,  know. 

The  many  millions  of  dollars  of  mining  profits 
accumulated  each  year  are  won  by  labor  and  com- 
mon business  sense.  There  are  still  vast  sums  to  be 
wrested  from  cunning  old  Dame  Nature's  hidden 
treasury  vaults,  and  each  day  the  commercial  miner 
makes  success  more  positive.  Money  is  needed  to 
build  machinery,  open  ore  bodies,  and  market 
product,  that  new  millions  may  be  made.     In  the 


ROCKS  IN  THE  ROAD  TO  FORTUNE         19 

broad  deep  field  of  mining  there  are  few,  if  any,  ex- 
treme philanthropists.  The  miner  is  willing  to 
share  generously  with  those  who  supply  the  needed 
capital;  but  I  never  knew  of  a  legitimate  miner  to 
spend  thousands  of  dollars  in  the  daily  and  weekly 
press  with  an  honest  desire  to  give  ten  dollars  in  a 
few  weeks  for  each  dollar  invested  with  him  to-day. 
The  Eastern  investor  seldom  meets  the  true  West- 
ern miner  on  the  question  of  where  a  fair  risk  for  a 
large  gain  is  discussed  upon  business  lines.  Their 
rapacity  causes  them  to  turn  aside  from  the  sound, 
and  attentively  heed  the  unsound. 

Gold,  silver  and  copper  mining  is  as  necessary  as 
the  digging  of  coal,  but  it  is  not  all  success.  Mines; 
are  never  found.  The  indications  are  discovered,  but 
the  bullion  producer  is  created  only  by  the  applica- 
tion of  capital  skillfully  used.  Great  mineral  dis- 
coveries are  worthless  until  opened,  and  the  wealth 
of  their  ores  freed  by  scientific  application  of  fire 
and  water,  which  turns  the  raw  material  of 
money  into  the  bullion  convertible  into  coin. 
Science  applied  to  mining  is  simply  organized  com- 
mon sense,  utilized  invention  and  profiting  by  expe- 
rience; and  it  is  as  essential  to  couple  investment 
with  discretion  and  seasoned  knowledge  as  it  is  to 
determine  that  ore  exists  in  commercial  bodies. 
When  gold  and  silver  mines  are  of  intrinsic  value, 
they  are  among  the  greatest  of  profit  earners;  but 
conducted  without  well-applied  capital  and  exper- 
ience, the  same  obstacle  will  be  encountered  as  are 
found,  in  similar  circumstances,  in  other  business 


20    ROCKS  IN  THE  ROAD  TO  FORTUNE 

undertakings.  The  investor  must  learn  that  no 
venture  is  sure;  and  that  "Sure  things"  are  likely 
to  be  unsound.  Rich  mineral  discoveries  made  to- 
day cannot  be  turned,  in  the  very  nature  of  things, 
info  crg^t  to-morrow.  Only  by  skill  and  the  expend- 
iture of  money  are  the  enormous  dividends  credited 
to  mining  made  possible.  Every  commercial  miner 
or  well-informed  financier  is  aware  of  these  facts, 
and  it  is  to  those  who  have  much  to  learn  of  mining 
that  these  remarks  are  addressed.  When  they 
reason,  they  will  perhaps  understand  that,  when 
men  offer  extraordinary  inducements,  there  is  a  per- 
sonal want  to  be  supplied — by  the  investor's  money, 
and  that  when  things  are  gratuitously  given  they 
are  often  the  most  costly  of  all  gifts. 

In  the  golden  West,  where  the  ore  is  actually  ex- 
tracted upon  commercial  lines,  we  seldom  hear  of 
serious  disappointments  among  those  who  mine 
with  experience  and  upon  economic  lines.  The  mis- 
takes are  brought  to  their  notice  through  some 
unfortunate  Eastern  investor,  who  believed  that  the 
digging  of  gold  and  silver  was  simply  the  applica- 
tion of  capital  to  some  vein  or  deposit  supposed  to 
contain  ores  in  commercial  quantities,  and  that  mil- 
lions of  profits  were  as  good  as  banked.  To  this  class 
of  investors  I  say  that,  his  ill-advised  operations 
should  not  keep  him  from  entering  the  real  realm  of 
mining.  It  is  hoped  that  he  may  be  won  to  the  ac- 
tual industry,  and  share  the  riches  that  follow  the 
mastering  of  the  combinations  which  hold  the 
wealth    that    nature    has    secreted,    in    her    sub- 


ROCKS  IN  THE  ROAD  TO  FORTUNE         23 

terranean  pockets;  for  despite  ill-advised  losses, 
the  dividends  from  commercial  mining  are  enor- 
mous. Greater  than  the  dividends  upon  the  entire 
system  of  railroads  represented  by  dividend  stocks. 

There  are  only  three  things  to  make  mining  com- 
mercial. But  the  fact  that  these  three  things  must 
exist  before  profits  can  be  reaped  is  not  generally 
realized  by  the  inexperienced,  until  after  the  pur- 
chase of  stock  has  been  made.  The  inexperienced 
buys — then  he  investigates.  He  should  reverse  that 
plan.  Those  who  buy  upon  impulse,  fearing  they 
may  not  be  in  position  to  buy  to-morrow,  are,  as  a 
rule,  sure  to  lose.  To  be  successful,  take  time — but 
not  too  much  time. 

Keason,  reflect,  weigh.  Do  not  let  your  impulse 
run  aw^ay  with  your  judgment:  and  do  not  believe 
all  the  sensational  promises  made  by  vendors  of 
publicly  promoted  stocks. 

The  three  cardinal  necessities  in  mining  are:  Ore^ 
in  commercial  bodies  well  opened;  good  local  condi- 
tions; practical  management.  Without  these,  there 
can  be  no  success.  Prospecting  is  the  highest  form 
of  mine  speculation,  but  that  branch  of  the  industinr 
is  only  the  beginning.  Proniotion  is  the  persuasion 
of  capitaj  to  venture.  All  mining  is  a  venture,  until 
success  stamps  it  commercial,  as  all  men  are  fail- 
ures, until  they  are  successes. 

Mining  is  always  termed  speculative,  on  account 
of  the  risk  and  the  great  gains;  the  risks,  however, 
are  fast  being  eliminated.  Ore,  in  known  commer- 
cial bodies,  is  only  the  basis  of  legitimate  mining. 


^Vii 


^2    ROCKS  IN  THE  ROAD  TO  FORTUNE 

All  the  arguments  of  brilliant  orators,  gifted  writ- 
ers, pages  of  sensational  promises,  and  historical 
citations  of  the  success  that  follows  success,  will 
not  place  a  ton  of  ore  in  the  barren  vein.  Invest  in 
prospect,  as  that  is  necessary,  in  order  that  the  in- 
dustry may  grow,  some  of  the  largest  profits  lay 
here;  but  realize  that  it  is  a  prospect,  and  worth 
only  a  prospect's  figure.  Do  not  believe  that  every 
prospect  will  in  the  end  prove  commercial.  If  you 
wish  to  eliminate  much  of  the  risk,  and  are  satisfied 
with  from  10  per  cent,  to  25  per  cent.,  then  be  sure 
you  are  in  on  the  commercial  side.  But  do  not 
pay  for  a  prospect  the  amount  you  would  pay  for  a 
mine.  A  mine  has  a  value  proven  by  its  actual  pro- 
duct 


CHAPTER  IV. 
TRE   IMPORTANCE   OF   LOCAL  CONDITIONS. 

Such  improvements  have  been  made  during  the 
past  ten  years  that  it  may  be  said  that  the  industry 
has  just  crossed  the  threshold  of  that  which  is  the 
only  true  avenue  to  success — commercialism;  as 
once  passed  steam,  electricity,  the  manufacture  of 
iron  and  steel,  and  the  improved  conditions  are 
largely  responsible  for  it. 

The  advent  of  Eastern  men  with  mercantile 
training  has  brought  to  the  west  practical  economy, 
and  they  are  assisting  towards  the  commercial  end. 
The  weighing  conditions  which  follow  the  success- 
ful upbuilding  of  any  line  of  commerce  or  trade,  we 
owe  to  them.  Thus,  mining  to-day  bears  about  the 
same  relation  to  the  efforts  of  thirty  years  ago  as 
did  the  Elias  Howe  sewing  machine  of  1846  to  the 
mechanical  masterpieces  of  to-day,  made  indispen- 
sable by  the  expenditure  of  thought  and  necessary 
capital.  To-day,  mining  ore  for  a  profit  is  a  business, 
and  our  ablest  men  are  active  in  making  valuable 
that  which  was  worthless  a  few  years  ago;  conse- 
quently, the  district  that  bids  for  the  favor  of  men 
who  want  profit  from  ore  must  be  in  a  position  to 
show  results — not  blind  anticipations,  or  unsup- 
ported assertions  from  irresponsible  men. 

23 


24    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Those  who  have  failed  in  mining  ventures  may 
now  see  the  rock  upon  which  their  hopes  were  split, 
for  believing  too  implicitly  in  those  whose  interests 
were  purely  selfish.  They  can  now,  however,  succeed, 
if  they  will  profit  by  their  bitter  experience.  Ore, 
the  only  source  of  actual  wealth  from  mines,  is 
found  in  veins  and  deposits.  It  does  not  grow  upon 
rocks,  as  some  are  led  to  believe,  and  is  seldom  above 
ground,  except  where  the  vein  cropping  carries  high 
values,  which  is  the  exception,  and  not  the  rule. 

Years  ago  we  knew,  comparatively,  very  little 
about  mining  geology,  and  many  costly  mistakes 
were  made.  But  the  investor  can  turn  those  errors 
to  his  advantage.  Fortunes  are  now  in  the  making 
upon  the  same  properties  that  years  ago  brought 
losses  and  sorrows  to  their  owners.  Provided  there 
is  ore  in  the  mines,  but  it  is  only  by  the  change  in 
conditions  that  such  losses  can  be  turned  to  profit. 
The  advent  of  a  railroad  has  been  known  to  change 
the  whole  aspect  of  a  district,  from  a  commercial 
standpoint.  So  the  investor  should  know  that  the 
conditions  are  favorable,  even  though  his  ore 
showing  is  good:  for,  unless  local  conditions  are 
right,  $20  ore  may  not  be  as  valuable  as  |10  ore  in 
more  favorable  localities.  That  this  may  be  forci- 
bly illustrated,  I  will  say  that  in  some  parts  of  Col- 
orado, a  six  dollar  ore  is  very  profitable,  in  Cali- 
fornia, a  four  dollar  gold  ore  is  commercial,  yet  in 
(me  of  the  Western  states,  to  which  inexperienced 
capital  has  been  very  generous,  even  a  ten  dollar 
ore  is  worthless,  for  the  published  freight  rate  on 


ROCKS  IN  THE  ROAD  TO  FORTUNE         25 

ore  were  as  follows:  To  enter  San  Francisco,  Salt 
Lake  or  Denver,  all  ores  under  |25  value  was 
charged  $8  per  ton,  on  |300  ore  the  rate  was  |22  per 
ton — and  after  this  from  3  to  5  per  cent,  of  the  value 
of  the  ore  was  added  to  the  freight  charge.  Thus 
the  advantage  of  conditions  is  shown — as  the  freight 
charge  from  Georgetown,  Idaho  Springs,  Central 
City,  Leadville  and  Montezuma  regions  of  Colorado 
is  only  $1.75  per  ton  upon  |25  ore.  In  years  to  come 
the  district  referred  to  may,  by  the  improvement  of 
conditions,  enjoy  lower  rates  also. 

Commercial  miners  figure  upon  conditions  as  of 
almost  equal  importance  to  ore  values,  unless  the 
mineral  should  be  of  the  "picture''  character,  which 
is  of  rare  occurrence;  the  ore  being,  for  a  limited 
area,  then  so  rich  that  any  expense  of  extraction  or 
treatment  can  be  met.  But  in  such  rare  cases,  and 
they  are  very  rare,  there  is  no  necessity  of  inviting 
the  public  to  buy  shares  in  the  mine;  and  where  men 
offer  to  sell  stock  in  such  mines  at  a  low  figure,  it  is 
usually  because  they  do  not  believe  that  the  ore  will 
hold  out.  The  general  run  of  mines  which  are  classed 
as  commercial  are  low  in  grade;  from  |7  to  $15  a  ton, 
with  first  class  smelting  ore  averaging  about  $30  a 
ton.  Therefore,  before  great  tonnage  mines  can  be 
made  commercial,  there  must  be  mills,  smelters,  rail- 
roads, and  power  houses;  and  they  are  never  under- 
taken until  that  is  first  known — which  the  inexper- 
ienced promoter  studies  last:  The  actual  size  and 
character  of  the  ore  bodies  and  the  local  conditions. 

The  merchant  that  contemplates  the  manufac- 


26    ROCKS  IN  THE  ROAD  TO  FORTUNE 

ture  of  products  in  a  new  locality  first  looks  at  his 
transportation  facilities  and  labor  conditions.  They 
being  favorable,  he  figures  upon  the  cost  of  his 
supply  of  raw  material,  and  the  price  obtainable  for 
his  manufactured  product.  The  commercial  miner 
does  the  same,  for  gold  and  silver  are  manufactured, 
just  as  is  a  stove,  or  any  other  product  of  metals. 
If  local  conditions  are  against  the  cheap  extraction 
of  ore,  and  the  marketing  of  the  same  at  a  substan- 
tial profit,  then  the  district  is  for  the  time  being 
classed  as  non-commercial.  If  there  are  small 
streaks  of  high  grade  ore,  some  promoters  will,  how- 
ever, keep  the  section  in  the  investor's  eye. 

The  casual  buyer,  reading  the  lurid  promises  of 
"Millions  of  dividends!"  which  only  the  experienced 
operator  makes,  does  not  often  realize  that  certain 
conditions  must  exist  before  even  moderate  profits 
are  possible.  If  he  insists  upon  a  statement  of  fact 
relative  to  the  positive  supply  of  mineral,  the  home 
or  central  market  for  the  same,  and  the  vital  trans- 
portation feature,  the  answers  should  be  plain,  so 
that  any  man  may  understand  them,  and  not  vague, 
as  is  usually  the  case,  when  the  actual  conditions 
are  not  favorable.  The  assertion  that  a  railroad  is 
to  be  built  next  year  does  not  always  mean  that  it 
will  be  so  constructed.  Some  sound  reason  should 
accompany  the  statement. 

There  is  no  lasting  condemnation  in  being 
classed  with  non-commercial  districts,  as  all  dis- 
tricts were  at  some  time  in — more  or  less — the  same 
category.    The  fault  found  with  publicity  flotations 


ROCKS  IN  THE  ROAD  TO  FORTUNE         27 

fostered  by  the  inexperienced,  is  the  blinding  of  the 
investor  to  the  actual  fact,  the  promising  of  profits, 
when  the  conditions  at  the  time  may  be  so  averse 
that  no  man  can  make  money  without  the  self  con- 
struction of  roads  and  mills,  which  would  necessi- 
tate the  expenditure  of  millions  of  dollars.  When 
inadequate  facilities  are  at  hand,  the  fact  should  be 
stated:  then  the  investor  takes  his  chance  with  his 
eyes  open,  and  a  knowledge  of  the  obstacles  ahead; 
then  when  successful,  through  the  advancement  of 
conditions,  his  profits  will  be  proportionately  large. 
Therein  lies  one  of  the  principal  speculative  features 
of  mining — the  improvement  of  conditions  in  a  min- 
ing camp.  Those  interested  in  the  sale  of  mining 
stock  based  upon  prospects  claim  that  if  the  ob- 
stacles are  made  clear  that  there  will  be  but  few 
sales.  This  is  not  the  fact,  if  the  valuation  on  the 
prospect  is  reasonable;  the  investor  will  risk  for  the 
chances  of  reaping  the  great  i^roflts  that  come  to 
the  successful  prospect  when  the  conditions  im- 
prove— but  naturally,  the  buyer  will  not  pay  the 
same  price  that  he  does  for  a  prospect  located  where 
conditions  are  more  favorable. 

There  are  many  districts  to-day  on  a  commercial 
basis  that  were  prospective  as  producers  even  five 
years  ago.  Conditions  change,  and  the  profit  market 
changes  with  them.  As  they  improve,  we  find  the 
miner  of  to-day  reaping  profits  from  material  which 
was  considered  non-marketable  even  ten  years  ago. 
Each  year  a  lower  grade  will  be  made  commercial. 
The  investor  should  know  the  facts,  in  order  that  he 


28    ROCKS  [N  THE  ROAD  TO  FORTUNE 

may  reflect  and  reason  upon  the  time  when  condi- 
tions will  so  change  that  profits  may  be  confidential- 
ly looked  for.  A  poor  man  will  not  then  mortgage 
his  home  to  buy  stock  in  a  prospect  that  cannot,  by 
reason  of  imperfect  conditions,  be  commercial  for 
years.  Some  of  the  more  widely  advertised  districts 
are  so  lacking  in  water,  transportation  and  smelting 
advantages  that  they  may  not  be  commercial  for  ten 
or  twentj'^  years.  Those  conditions  are  recognized 
by  the  experienced,  but  are  seldom  made  a  part  of 
the  public  appeal  for  capital  by  the  class  of  pro- 
moters that  pay  more  attention  to  stock  sale  and 
their  commissions  than  they  do  to  ore  extraction, 
the  reputation  of  the  industry,  or  the  sorrow  of 
those  who  may  lose. 

In  the  early  days  of  mining — in  some  of  the  dis- 
tricts nov.-  recognized  as  the  soundest  commercially — 
the  conditions  were  not  so  favorable  as  at  present; 
and,  while  there  was  rich  ore  at  the  surface  in  those 
fissures  that  gave  evidence  of  being  mines,  the  cost 
of  treatment  was  so  expensive  that  fully  eight- 
tenths  of  the  vein  contents  of  some  of  the  best  pro- 
ducers in  those  camps  were  uncommercial,  and  un- 
mined  until  with  the  past  few  years.  A  big  Bonanza 
is  not,  as  proclaimed,  always  rich  ore.  Some  of  the 
largest  dividend  payers  are  low  grade.  The  average 
value  of  the  ore  extracted  from  the  great  Comstock 
Mines  of  Nevada  was  under  twenty  dollars  per  ton 
and  the  average  value  of  the  rich  mines  of  Butte, 
Montana,  is  less  than  $10  per  ton. 

Admitting  that  the  mine  has  ore  of  a  marketable 


ROCKS  IN  THE  ROAD  TO  FORTUNE        29 

grade,  with  the  bodies  well  opened,  the  vital  ques- 
tions should  be  asked:  Have  you  plenty  of  water 
flowing  naturally?  Have  you  timber?  Have  you  a 
railroad?  Have  you  a  market  near  at  hand,  and 
what  is  the  freight  rate  per  ton  on  ore  to  the 
smelter,  or  the  wagon  haul  to  the  mill,  if  one  is 
owned,  or  to  the  custom  works?  And  after  meeting 
all  fixed  charges,  will  the  ore  leave  a  sound  net 
profit?  Commercial  miners  ask  these  questions;  the 
holder  of  even  ten  shares  should  ask  them.  Lack 
of  local  conditions  often  make  failures  of  mines  that 
years  afterwards  prove  bonanzas,  but  the  facts  of 
conditions  should  be  known,  that  the  buyer  may  fig- 
ure upon  the  time  when  he  is  to  expect  returns. 
There  is  no  reason  why  mining  should  not  be  car- 
ried on  in  sections  where  conditions  are  not  perfect, 
for  by  taking  the  venture  the  purchase  price  should 
be  small,  and  gradually  the  values  increase  with  the 
improving  of  conditions.  Some  of  the  largest  min- 
ing profits  are  reaped  by  buying  and  waiting,  but 
they  were  positive  of  the  grade  and  extent  of  ore 
bodies. 


CHAPTER  V. 

THE  PROSPECT,  THE  PROSPECTOR— HIS  IN- 
FLUENCE ON  WESTERN  PROGRESS. 

The  prospector  is  the  pioneer  of  mining.  To  him 
is  due  the  credit  of  the  magnificent  results  that  fol- 
low the  commercial  extraction  of  ores  and  metals, 
amounting,  in  the  gross,  from  precious  and  base 
product  to  over  four  hundred  millions  of  dollars 
per  annum;  without  the  prospect  there  would  be 
no  commercial  mines;  every  large  producer  that  is 
to-day  adding  its  quota  to  the  world's  needed  sup- 
ply of  metals  was  at  one  time  a  valueless  seam  in 
the  earth,  its  metallic  contents  made  commercial  by 
the  energies  and  capital  of  those  who  develop  the 
prospectors  discoveries. 

The  West  was  first  populated  with  the  adven- 
turous spirits,  who  followed  the  trapper  and  came 
from  "no  man  knows  where."  Their  antecedents 
were  not  questioned;  in  many  cases  they  were 
known  simply  by  some  cognomen.  They  became  a 
part  of  the  country  and  were  a  step  in  its  advance- 
ment. Writers  have  commented  upon  the  character 
of  the  roving  spirits  that  blazed  the  trail  for  the 
army  of  progress  that  followed  with  their  civilizing 
influences;  it  has  been  claimed  that  many  were  so- 

30 


ROCKS  IN  THE  ROAD  TO  FORTUNE         31 

<!ial  outcasts.  Be  this  as  it  may,  I  cannot  see  how 
the  personal  character  of  the  early  prospector  can 
take  from  him  his  right  to  be  honored  for  the  part  he 
afterwards  played  in  the  upbuilding  of  the  Gold<^n 
Empire  West  of  the  Mississippi  River.  Men  make 
mistakes;  perhaps  the  early  prospector  made  his, 
but  they  became  the  pioneers  and  did  their  part 
towards  laying  the  foundation  of  the  precious  min- 
eral industry  of  the  United  States. 

During  the  frontier  days  there  were,  no  doubt, 
many  persons  who  went  West  "Scarlet."  Some  of 
them  may  have  been  justly  or  unjustly  accused;  for 
if  the  pioneer  codes  of  1849  were  anything  like  the 
blue  laws  of  to-day,  still  upon  the  statute  books  of 
several  states,  it  must  have  been  a  rare  intelligence, 
indeed,  that  kept  one  from  violating  some  section, 
punishable  by  imprisonment. 

The  wealth  of  the  West  owes  its  being  to  the 
fact  that  in  the  days  of  early  gold  and  silver  mining 
there  were  men  standing  upon  man's  own  merit. 
Side  by  side  with  unfortunate  judges,  dissipated 
lawyers,  thieves  (if  I  may  use  a  harsh  noun)  and  all 
forms  of  gamblers,  but  they  did  there  a  man's  work; 
and  the  world  to-day  enjoys  the  fruits  of  that  labor. 
Those  men — the  early  prospectors — braved  the 
hardships  of  the  severe  winters,  often  suffering 
from  lack  of  food,  searching  for  the  metal-bearing 
veins  with  rifle  in  one  hand  and  pick  in  the  other. 
District  after  district  was  opened  by  these  roving 
spirits,  who  may  or  may  not  have  been  a  credit  to 
modern  society,  but  they,  and  those  associated  with 


32    ROCKS  IN  THE  ROAD  TO  FORTUNE 

them  in  the  upbuilding  of  the  territories  west  of 
the  Rocky  Mountains,  were  engaged  in  laying  the 
foundation  for  the  civilization  that  followed  and, 
as  far  as  the  winning  of  the  golden  fields  is  con- 
cerned, their  past  is  a  forgotten  dream — the  unsub- 
stantial fabric  of  a  vision.  While  by  the  laws  of 
nature  or  fate  there  may  have  been  evil  spirits 
among  the  good,  the  same  may  be  said  to-day  of 
more  advanced  circles. 

For  two  years  I  was  thrown  in  close  companion- 
ship with  an  element  in  Tombstone,  Arizona,  and 
northern  Mexico,  before  the  Southern  Pacific  Rail- 
road had  reached  the  coast,  who  have  become  famed 
in  history  as  desperadoes.  A  splendid  opportunity 
of  studying  the  character  of  these  men  was  pre- 
sented. They  were,  no  doubt,  what  to-day  would  be 
termed  "undesirable  citizens"  among  the  heteroge- 
neous inhabitants,  but  as  men  I  found  nearly  every 
one  generous,  self-reliant,  courageous,  purposeful, 
charitable.  They  searched  those  wild  mountains, 
made  discoveries,  obtained  small  sums  of  money, 
came  into  Tombstone,  and  there  laid  the  foundation 
for  the  reputation  that  followed  them,  even  after 
their  death.  It  was  the  results  of  street  brawls,  gun 
fighting  and,  in  rare  cases,  of  robbery  and  murder; 
but  where  murder  was  committed  there  was  gener- 
ally some  reason.  Perhaps  the  man  who  was  killed 
would  have  killed  the  other,  and,  if  an  analysis  of 
the  causes  that  made  these  men  notorious  as  evil- 
doers were  made,  it  would  be  found  that  the  cause 
lay  in  the  one  word,  "whiskey." 


ROCKS  IN  THE  ROAD  TO  FORTUNE         98 

From  1875  until  1884  the  writer  met  maBy  of 
this  class,  who  were  prospectors  for  three  months 
and  desperadoes  for  one  week,  when  upon  a  drunken 
orgie  in  some  country  town.  The  memory  of  these 
men  will  command  respect  as  the  ones  that  blazed 
the  trail;  their  weaknesses  we  desire  to  forget. 
Their  discoveries  were  purchased  by  men  with 
means  and  the  title  was  generally  good;  when  a 
bonanza  is  discovered  the  District  Recorder  does 
not  delve  into  the  antecedents  of  the  finder,  nor  does 
the  world,  that  profits  by  the  find,  look  upon  its 
fortunes  as  tainted,  because  someone  bearing  an  as- 
sumed name  found  it. 

The  laws  of  the  United  States  governing  the  dis- 
covery of  mineral  lands  has  not  changed  materially 
since  1872,  but  in  each  district  there  are  local  lawTU 
relative  to  area  and  working  conditions,  which,  how- 
ever, do  not  conflict  materially  with  the  United 
States  laws.  The  prospector  enters  an  unexplored 
region  and  he  searches  for  evidence  of  veins  or  da- 
posits.  Some  of  these  men  have  marked  intelli- 
gence; some  are,  and  were  illiterate;  but  the  mental 
capacity  of  the  prospector  did  not  always  weigh  th«? 
heaviest  in  the  scales  of  success.  In  prospecting, 
intelligence  does  not  obstruct  the  inevitable  stroke 
of  the  hand  of  fate,  which  often  stays  the  worthy 
and  gives  fortune  to  the  undeserving.  For  this  rea- 
son it  has  often  been  claimed  that,  as  far  as  pros- 
pecting is  concerned,  all  men  stand  upon  an  equal- 
ity in  a  new  district;  that  is,  those  who  prospected 
twenty  years  ago  were  in  this  category,  for  the  sci- 


U         ROCKS  IN  THE  ROAD  TO  FORTUNE 

«nce  of  mine  search  was  then  in  its  infancy,  and  it 
was  generally  a  question  of  "blind  luck."  Fugitives 
from  justice  wandering  in  the  Death  Canyon,  seek- 
ing only  a  hiding  place  from  their  nemesis,  have 
fallen  as  if  shot  upon  bonanzas;  ignorant  drunkards 
have  been  known  to  find  rich  property  in  mining 
trails,  worn  smooth  by  the  feet  of  cultivated  pros- 
pectors. The  largest  gold  nugget  that  was  ever 
found  in  the  Big  Bug  District  of  Arizona,  where  the 
writer  was  at  one  time  employed,  was  the  prize  of  a 
no-account  Mexican,  who,  when  he  awakened  from 
his  drunken  slumber,  felt  his  hand  clutching  the 
prize.  Jean  Valjean,  first  a  criminal,  then  a  hero  in 
Hugo's  immortal  story,  "Les  Miserables,"  discov- 
ered a  jet  composition  which  made  a  poverty- 
stricken  region  commercially  rich. 

While  the  element  of  luck  followed  the  prospec- 
tor in  the  early  days,  it  does  not  bear  the  same  re- 
lation to  success  in  this,  the  twentieth  century.  In 
the  last  twenty-five  years  the  prospector  has  become 
the  student  of  experience.  He  profits  by  the  fail- 
ures of  the  past.  He  is  able  to  make  deductions  and 
to  weed  out  the  unsubstantial  in  favor  of  that  which 
gives  greater  possibilities  of  success.  In  the  old 
days  a  hundred  prospects  might  be  worked  before 
the  mother  lode  or  the  bonanza  vein  or  deposit  of 
the  district  was  encountered.  To-day,  by  using  the 
experience  of  the  past,  the  prospector  is  able  to 
form  conclusions  from  what  he  has  seen  in  other 
cases,  and  he  has  reduced  his  risk  down  to  possibly 
twenty-five  per  cent.     Thus  we  find  men  of  experi- 


ROCKS  IN  THE  ROAD  TO  FORTUNE         36 

ence  passing  over  slivers,  crevices,  ledges,  dykes, 
etc.,  that  were  eagerly  located  and  worked  as  late  af>. 
fifteen  years  ago. 

While  the  prospect  is  the  indication  of  the  mine, 
and  is  the  starting  point  for  the  development  of  the 
same,  it  is  but  the  first  step  in  the  industry,  and  in 
the  prospect  is  found  the  "Saragossa  Sea  of  derelicts 
mining  ventures."  Fully  thirty-five  per  cent,  of 
all  the  loss  attributed  to  gold,  silver,  lead  and  cop- 
per extraction  can  be  laid  to  the  mistake  of  believ- 
ing a  prospect  was  a  mine.  If  the  exact  position  of 
the  prospect,  in  the  various  branches  that  combine 
to  make  mining  commercial  could  be  understood 
by  those  residing  far  from  the  mines,  and  who  ar« 
called  upon  to  invest  in  the  development  of  the 
same,  a  vast  majority  of  the  disappointments  that 
follow  Eastern  effort  to  reap  the  natural  wealth 
would  be  eliminated. 

On  the  question  of  the  prospects  we  ask  extend- 
ed indulgence;  it  is  the  germ  that  is  responsible  foT 
the  disease  we  hope  to  cure;  that  is,  the  elimination 
of  the  corporation,  with  its  widely  sold  shares,  upon 
the  assumption  that  a  prospect  is  a  mine  and  the 
unsubstantial  estimates  made  upon  the  earning 
power  of  the  same.  As  this  is  written  we  fancy  w^ 
hear  those  of  a  scientific  turn  of  mind — students  of 
nature,  engineers  and  the  well-read  investor — say- 
ing, "How  simple — a  mere  kindergarten."  Thi» 
work  is  not  intended  for  those  that  know  the  trutb 
and  are  as  well  able  to  draw  the  distinctive  line  an 
the  most  experienced  miner.    They  are  not  often  the 


36    ROCKS  IN  THE  ROAD  TO  FORTUNE 

victims  of  misplaced  confidence.  The  writer  intends 
this  to  be  the  plainest  primer  that  it  is  possible  for 
him  to  write;  to  tell  the  facts  in  homely  language, 
so  that  even  the  slightly  schooled  may  understand. 
Those  who  know  do  not  require  to  be  told.  The 
writer  hopes  that  it  will  benefit  those  that  do  not 
anderstand  the  distinction  between  the  beginning 
and  the  end  of  mining  ventures — the  prospect  and 
the  dividend-paying  mine. 

It  is  not  proposed  to  enter  into  a  lengthy  de- 
scription of  why  veins  contain  minerals  or  why  cer- 
tain rocks  lay  flat  and  others  tilted  on  end.  The 
reader  in  search  of  that  class  of  information  will 
find  it  ably  presented  in  many  worthy  scientific 
publications,  such,  for  instance,  as  the  "Mining 
and  Engineering  Journal,"  "Mining  and  Scientific 
Press,"  "Ores  and  Metals"  and  the  works  of  Kemp, 
Richards,  Beck,  Rickard,  Peters  and  Weed,  or  the 
comparatively  more  ancient  works  of  Baron  Von 
Humboldt;  all  up-to-date  commercial  miners  read 
these  works  and  know,  but  the  layman  does  not  read 
them.  I  want  the  man  at  the  plough,  the  trades- 
man, the  mechanic,  the  artist,  the  saleswoman  and 
the  clerk  to  understand  in  the  plainest  language 
that  there  is  a  distinct  difference  between  a  pros- 
pect and  a  mine.  That  they  may  understand  that 
certain  things  exist;  a  description  of  why  they  exist 
is  not  to  be  attempted.  The  casual  investor  in  a 
mining  proposition  has  not  the  time  to  study  the 
scientific  beliefs  of  why  the  mine  was  formed.  What 
he  wants  to  know  is  that  the  mine  exists,  and  that 


ROCKS  m  THE  ROAD  TO  FORTUNE         37 

which  he  desires,  profitable  ore,  is  in  the  veins  or 
deposit. 

Many  millions  of  years  ago,  when  the  world  was 
supposed  to  be  undergoing  upheavals,  contractions, 
and  the  surface  opened  by  the  cooling  processes, 
which  in  certain  parts  of  the  globe  were  more  pro- 
nounced than  in  others,  especially  where  the  up- 
heavals of  mountainous  regions  were  the  heaviest, 
as  the  molten  mass  thrown  up  from  the  bowels  of 
the  earth  settled  and  the  earth  cooled,  there  were 
opened  cracks  and  fissures,  just  as  you  see  cracks 
and  fissures  open  in  a  muddy  bed  after  the  waters 
have  receded  and  the  sun  has  dried  the  surface. 
Some  cracks  and  fissures  extended  thousands  of 
feet  deep;  others  only  to  a  few  hundred  feet,  while 
some  were  less  than  one  hundred  feet  in  depth. 
Some  pitched  one  way,  some  another,  but  generally 
the  great  cracks  in  the  earth's  crust  had  a  tendency 
to  strike  north  and  south,  though  often  large  crev- 
ices struck  east  and  west,  cutting  through  other 
crevices  that  had  a  northern  strike.  On  the  ques- 
tion of  exactly  how  these  cracks  were  made  sci- 
entists differ,  but  that  is  not  a  part  of  this  work. 
These  cracks,  crevices  and  slivers  exist,  and  they 
are  filled  with  mineral  contents.  Some  of  them  are 
very  large  and  have  a  direct  straight  strike,  with 
their  feeders  extending  out  on  each  side,  just  as 
though  a  pane  of  glass  was  dropped  on  the  floor, 
where  one  great  crack  will  be  extended  the  full 
length  of  the  pane,  and  from  it  will  radiate  hun- 
dreds of  smaller  cracks.      Thus  the  great  mother 


38    ROCKS  IN  THE  ROAD  TO  FORTUNE 

veins  of  the  districcs  were  formed;  thus  the  worth- 
less prospects  found  their  origin. 

Later  on  it  is  claimed  that  hot  waters,  charged 
with  mineral  solutions  and  salts,  flowed  back  and 
forth  over  the  surface  of  the  earth,  aud  through 
these  open  fissures,  until  the  precious  metals  were 
placed  in  the  so-called  treasury  vaults,  commonly 
called  mines.  Others  claim  that  the  metal  was 
forced  up  from  the  molten  mass  in  the  centre  of  the 
eartli;  the  layman  has  not  the  time  to  consider  or 
to  draw  the  distinction  between  which  theory  !■ 
right  and  which  is  wrong.  That  which  interests  him 
is  the  fact  that  the  precious  metal  exists;  he  wanti 
to  understand  that  in  the  forming  of  the  metallifer- 
ous veins  that  nature  placed  larger  bodies  of  rich 
ore  in  some  fissures  than  she  did  in  others — some 
medium  in  value,  others  absolutely  barren,  yet  all 
filled  with  silica  or  some  evidence  of  metal  value, 
and  that  he  has  the  opportunity  of  owning  all  or  a 
part  of  the  riches. 

As  these  conditions  changed  and  the  earth  cooled 
and  the  hot  water  stopped  surging  through  the 
veins,  the  crust  formed  on  some  of  these  cracks  and 
they  stand  above  the  earth  like  a  guide  post,  plainly 
visible  to  the  eye — the  beckoning  finger  of  nature  to 
the  prospector.  These  are  called  croppings,  and 
where  they  exist  the  labor  of  the  prospector  is  com- 
paratively easy,  for  blind  ledges  and  deposits  have 
no  croppings,  the  abrasion  of  time  having  worn 
these  finger-marks  of  nature  away,  and  the  veins 
are  often  covered  with  slide  and  dirt,  sometimes  to 


ROCKS  IN  THE  ROAD  TO  FORTUNE         39 

the  depth  of  a  hundred  feet.  Here  the  prospector 
encounters  his  diflQculty.  He  is  obliged  to  find  the 
vein  by  a  study  of  the  surface  conditions,  float  rock, 
etc.;  after  he  is  convinced  that  a  vein  exists  some- 
where in  the  immediate  vicinity,  he  starts  deep 
trenches  to  what  is  known  as  bed  rock  and  enters 
upon  a  search  for  the  lode,  which,  when  encoun- 
tered, he  is  able  to  discern  by  its  peculiar  character. 
In  every  mining  district  there  is  hundreds  of  these 
results  of  upheavals,  but  in  all  districts  there  is  few 
gi*eat  commercial  mines.  Yet  nearly  all  these  min- 
eral indications  show  a  little  evidence  of  value,  suf- 
ficient to  encourage  the  prospector,  but  the  exper- 
ienced pass  over  that,  which,  those  not  well  versed, 
eagerly  pounce  upon  and  hold  for  years.  The  map 
facing  will  give  an  idea  of  the  number  and  form  of 
fissures,  dykes,  deposits  and  slivers  as  they  exist,  in 
nearly  all  districts.  By  the  order  of  things  it  cannot 
be  expected  that  all  of  them  will  prove  of  value. 
Only  by  the  opening  of  the  ground  can  the  value  be 
actually  proven,  thus  the  prospect  stage,  while  the 
first  step,  is  naturally  most  risky  of  all.  Yet  the 
great  mines  were  the  result  of  opening  prospects, 
the  value  of  the  mine  increasing  with  its  showing  of 
ore. 

The  reader  may  consider  that  the  sketch  of  the 
lodes,  slivers,  and  spurs  is  a  little  exaggerated, 
but  it  is  not;  a  glance  at  the  location  map  of  any 
camp  will  convince.  Following  is  a  map  of  the 
noted  Tonopah  district  of  Nevada,  reproduced,  not 
as  a  reflection,  for  that  camp  is  entitled  to  proper 


40    ROCKS  IN  THE  ROAD  TO  FORTUNE 

dignity,  won  by  an  honest  production  of  metals 
from  its  central  zone.  The  author's  intention  is  to 
prove  that,  from  the  locations  made  by  miners  in 
any  camp,  where  even  one  rich  ore  shoot  has  been 
opened,  the  crossing,  overlapping  system  shows  con- 
clusively the  intricate  vein  or  sliver  system.  In 
other  camps  the  surface  maps  show  even  more 
locations,  thus  it  is  plain  that  the  experience  of 
years  in  many  camps,  is  necessary,  for  the  pros- 
pector to  reduce  his  risk,  by  locating  that,  which 
gives  the  least  possibility  of  being  barren. 


CHAPTER  VI. 

THE  DEVELOPMENT  AND  VALUE  OF  A 
PROSPECT. 

In  depositing  the  gold,  silver,  copper,  and  lead 
in  these  Assures  or  slivers,  nature  has  followed 
her  own  ideas  and,  notwithstanding  that  we 
have  made  great  advances  in  the  study  of  geology 
and  metallurgy,  we  have  never  yet  been  able  to 
fathom  the  secrets  of  nature  by  merely  looking  at  a 
mine,  even  though  it  may  be  well  opened.  We,  of 
course,  know  more  to-day  than  we  did  twenty  years 
ago,  but  we  are  still  sadly  lacking  in  perfect  knowl- 
edge. It  is  by  experience  that  we  profit,  by  drawing 
deductions  from  what  we  have  seen  in  other  mines. 
We  thus  pass  opinion  upon  what  we  see  in  new  ones, 
and  weigh  the  possibilities  of  success,  through  com- 
paring what  we  know  existed  in  the  successful 
mines,  and  applying  the  experience  to  that,  which 
we  hope  will  be  a  mine.  The  reader  can  understand 
that  a  study  of  many  districts  is  necessary  to  make 
the  miner  fairly  capable  of  passing  sound  opinion. 
It  took  years  to  advance  thus  far,  and  the  advance- 
ment was  only  made  possible  by  development.  One 
district  has  its  characteristics  and  in  the  adjoining 

41 


42    ROCKS  IN  THE  ROAD  TO  FORTUNE 

district  there  will  be  different  ones,  so  that  the  ad- 
vanced prospector  is  the  one  who  searches  for  lodes, 
fissures  and  crevices,  equipped  with  a  knowledge  of 
what  existed  in  other  sections. 

The    inexperienced    have    an    opinion    that    all 
mines  are  good,  if  they  show  any  surface  value,  and 
that  it  is  only  a  question  of  deep  development  to 
increase  the  supply  of  ore  and  its  value;  but  nature 
has  always  followed  her  own  plans.     In  some  of 
these  veins,  commonly  called  the  mother  veins,  she 
has  placed  great  wealth,  the  ore  bodies  often  ex- 
tending from  the  surface  unbroken  to  a  great  depth 
and  for  a  long  length  along  the  vein;  but  while 
one  claim  of  1,500  feet  in  length  will  be  rich,  the  ad- 
joining property  on  the  same  vein  will  be  treated 
niggardly  in  nature's  gifts.    In  some  veins  the  ore  is 
placed  in  small  but  frequent  bodies;  in  others,  she 
places  one  body,  and  never  are  there  others  found. 
In  nearby  veins  there  will  be  many  continuations  of 
ore  bodies   of  a   commercial   character;  in   others, 
large  bodies  of  ore  that  are  commercially  worthless. 
Some  veins  will  carry  nothing  but  gold;  some  noth- 
ing but  silver.  Then,  there  will  be  a  compounding  of 
gold,  silver,  copper,  lead,  arsenic  and  bismuth;  Id 
some,  more  gold  is  placed  than  silver,  then  the  sys^ 
tem  is  reversed.    In  some  veins  or  deposits  she  scat- 
ters the  metal  so  widely  that,  although  it  is  there, 
and  good  assays  can  be  obtained,  it  is  an  impossible 
task  to  gather  it  into  profitable  form  by  modern 
science.    Consequently,  the  prospector,  even  after  he 
finds  a  crevice,  is  a  subject  of  nature's  whims.    Some 


ROCKS  IN  THE  ROAD  TO  FORTUNE         43 

people  call  it  "blind  luck,"  because  no  man  can  tell 
positively  from  the  surface  indications  of  a  prospect 
what  it  is  going  to  develop  into. 

A  great  many  prospects  have  rich  ore  at  the  sur- 
face, and  it  continues  down  in  commercial  form  to  a 
depth  of  300  to  400  feet,  and  then  the  body  gives  out 
and  the  mine  becomes  non-commercial.  In  Clear 
Creek,  Colo.,  the  silver  mines  around  Georgetown 
and  Silver  Plume  showed  rich  ore  at  the  surface  but, 
a»  greater  depth  was  gained — while  many  of  the 
the  mines  are  still  commercial — the  bonanza  ores 
were  displaced  by  lower  grades  containing  zinc  and 
lead,  though  still  made  commercial  by  the  lowering 
of  smelting  charges  and  the  improvement  in  labor 
saving  devices.  The  writer  is  to-day  treating  cus- 
tom ore  from  Georgetown  in  his  mills  at  Idaho 
Springs,  that  ten  years  ago  was  thrown  over  the 
dumps  as  worthless,  the  system  of  concentration  not 
having  been  then,  as  perfect  as  it  is  to-day;  yet  from 
even  the  old  dumps  men  are  now  making  profit. 

After  a  prospector  settles  upon  a  discovery  as 
worthy  of  his  efforts,  he  proceeds  to  comply  with  the 
law  of  the  United  States,  which  calls  for  the  dis- 
covery notice.  In  this  Jlie  prospector  lays  claim  to 
1,500  feerafong  the  vein  and  froni,T5fca  150  feet  on 
each  side  of  the  crevice.  Within  sixty  days  after  the 
location,  he  is  obliged  to  sinEa!i9^foibtliOle,  either 
by  shaft  or  open  cut;  he  is  then  called  on  to  make 
record  of  the  location  ia  tHe^County  Recorder's  of- 
fice, and  this  gives  him  possessian^ of  the  property, 
but  each  year  until  the  propertv .i^^mtaate^- byjiiie , 


^*"^^0ieBS9;» 


44    ROCKS  IN  THE  ROAD  TO  FORTUNE 

United  States  Government,  the  miner  is  called  on  to 
do  what  is  called  "Assessment  work,"  which  is  the 
expenditure  of  |100  per  annum  upon  each  property. 
The  experienced  prospector,  if  there  is  pay  ore 
shown,  proceeds  to  take  it  out.  He  erects  his  wind- 
lass, which  is  suflflcient  for  the  first  50  feet  of  depth; 
then  he  makes  cuts  along  the  vein  and  extracts  the 
ore  to  the  best  of  his  ability.  This  he  sends  to  the 
smelter,  which  pays  him  a  fixed  sum,  after  deduct- 
ing smelting  charges.  If  the  ore  is  of  low  grade,  he 
develops  in  the  hope  of  striking  high  grade  ore,  or 
by  opening  sufficient  of  the  ground  to  justify  the 
erection  of  a  mill  to  treat  his  product. 

In  all  districts,  there  are  hundreds  of  these  pros- 
pects, and  until  they  are  explored  no  man  living  can 
positively  tell  which  of  the  group  will  be  the  bo- 
nanza; unless  rich  ore  in  commercial  bodies  is  shown 
at  grass  roots;  consequently,  until  the  human  race 
starts  its  battle  to  win  the  wealth  from  nature,  all 
of  these  veins,  slivers  or  deposits,  are  equally  worth- 
less. As  each  discovery  is  tested,  the  value  of  the 
prospect  increases  in  accordance  with  the  increase 
of  the  ore  showing  and,  perhaps,  out  of  500  locations 
— all  of  them  metal  stained  and  with  metal  contents 
visible — there  will  be  won  four  or  five  great  com- 
mercial mines  that  contain  the  prizes  nature  has 
placed  deep  in  their  hearts  to  reward  man's  energy. 

Yet  all  of  these  fissures  and  slivers  have  their 
champions.  Some  of  the  crevices  may  be  but  a  few 
inches  wide;  some  measure  a  hundred  feet;  yet  from 
the  day  of  the  surface  discovery,  the  ownership  of 


ROCKS  IN  THE  ROAD  TO  FORTUNE         46 

each  inspires  hope,  and  men  of  vivid  imaginatioB 
extol  the  worth  of  these  undeveloped  slivers  in  the 
earth,  as  of  enormous  value,  until  it  is  aptly  said 
that  ^^A  prospect  is  a  hole  in  the  ground,  owned  by  a 
li_ar,:iJ1  ■         ^      ^     — -~— — ---.««««.^ 

It  is  a  remarkable  thing  that  the  owner  of  a 
mineral  discovery  cannot  often  accurately  describe 
it.  If  the  vein  is  four  feet  in  width,  it  is  often 
called  four  and  a  half  feet;  if  there  is  five  inches  of 
fifty-ounce  ore  exposed,  when  the  description  is 
made  in  some  little  mining  town,  it  is  called  nine 
inches  of  seven^ounce  ore;  and  so  it  runs.  The  very 
best  of  the  minin^^opulation  are  giving  to  exagger- 
ation. It  is  n6<  nv^sit  as  misrepresentation,  but 
there  is  something  abdut  the  mining  industry  that 
leads  to  exaggeration,  except  by  those  who,  long  ex-, 
perieniced  and  through  many  disappointments,  causft. 
them  to  hold  ideas  reverse  to  the  bubbling  expecta- 
tions of  those  endowed  with  a  vivid  imagination. 

Tni^JJ.^district^. espgcia^^^  levels^  the 

veinff  qt.the  surface  are  often  rich,  and  rare  speci- 
mens  can  be  obtained  from  prospects  that  have  not, 
and  never  will  ha ve^  commercial  value;  yet  these 
specimens  are  taken  from  the  work  and  is  evidence 
to  support  the  claim  that  the  hole  shows  several  feet 
of  fine  shipping  ore.  The  inexperienced  investor, 
who  comes  into  mining  camps  with  a  desire  to  buy 
property,  not  being  educated  in  nature's  ways,  can^ 
not  tell  the  difference  between  ore  and  gangue  mat- 
ter. He  is  shown  a  crevice,  containing  four  feet  ©I 
non-commercial  ore,  yet  from  various  parts  of  it  he 


«>    ROCKS  IN  THE  ROAD  TO  FORTUNE 

can  obtain  assays  that  will  run  from  $50  to  flOO 
a  ton.  These  are  picked  out,  and  he  passes  his  opin- 
ion or  estimate  of  possible  tonnage  upon  these  small 
ipecimens.  And  here  lies  the  germ  of  the  mistakes, 
for  until  that  prospect  is  developed,  and  its  ore  con- 
tents proven,  it  is  not  a  mine,  and  has  no  value,  be- 
fond  whatever  speculative  value  the  owner  may 
place  upon  it.  A  prospect  may  be  valuable  from  the 
aurface  and  pay  its  way,  but  more  often  it  is  worth- 
less until  well  developed. 

Nature,  in  her  wise  way,  seems  to  have  regulated 
the  supply  of  gold  and  silver  in  her  treasury  vaults, 
fet  from  the  prospects  spring  the  great  mines;  the 
labor  is  to  win  the  producer  from  the  non-producer. 
It  is  the  science  of  mining  that  enables  the  experi- 
enced man  to  pass  over  the  sliver,  the  spur  and  the 
small,  insignificant  crevices,  and  to  reduce  his  risk 
by  locating  the  larger  fissure  that  gives  evidence  of 
containing  ore,  which  are  more  liable  to  be  the 
mother  vein  and,  subsequently,  the  bonanza. 

As  we  gain  experience,  we  learn  to  eliminate 
risks.  We  compare  a  small  fissure  with  something 
«een  in  another  district.  We  remember  how  it 
turned  out.  We  pass  it  over,  and,  finally,  perhaps, 
settle  upon  one  or  two  great  veins,  but  we  are  yet 
sadly  ignorant  of  all  the  combinations  that  hold 
nature's  secrets.  As  we  learn,  we  apply  the  condi- 
tions to  other  districts  and,  generally,  with  good  re- 
iults.  We  have  practically  mastered  metallurgy, 
but  not  geology. 

The  practical  miner  of  experience  draws  deduc- 


ROCKS  IN  THE  ROAD  TO  FORTUNE        .47 


'">5^rc/i 


tions  as  he  prospects.  He  knows  that  only'one  pros- 
pect out  of  a  hundred  may  prove  commercial.  B[e 
knows  that  the  great  majority  of  the  rich  dividend 
paying  mines  of  the  world  exposed  pay  ore  from  t^ 
surface;  he, seeks  the  vein  showing  rich  ore..  He  is 
notaBeliever  in  the  theory  that  if  you  sink  upoD 
any  prospect  that  you  will  find  rich  ore  at  depth. 
. J!llfije--ni  ust  Jbe  some  indication,,  otherwise  he  will 
not  devote  his  energies  to  the  development.  He 
realizes  that,  while  ore  exists  at  the  surface,  it  may 
not  continue  with  depth.  He  understands  that  you 
cannot  put  four  feet  of  pay  ore  in  a  six-inch  crevice; 
so  he  naturally  searches  for  what  is  termed  the 
mother  vein,  which  may  be  from  twenty-five  to  fifty 
feet  in  width.  He  has  always  before  him  the  knowl- 
edge that,  while  a  vein  may  not  show  any  mineral 
at  the  surface,  there  have  been  jcases  [where  depth 
has  proven  it  to  contain  rich  bodies.  Thus  the  de;v 
velopment  o^.  the  .ConsoUdated  Virginia  Mines  in 
Nevada  was.  Qf . jnaterial  benefit  to  the  prospector, 
for  at  the  depth  of  1,400  feet  the  great  bonanza  thaf 
gave"the  world  |114,o6o,do6  was  uncovered. 

The  desire  to  find  a  large  generous  crevice  pre- 
vails in  all  experienced  prospectors.  The  author 
prospected  the  San  Juan  country  with  an  old  miner, 
who  day  after  day  passed  over  rich  ore  that  ap- 
peared in  small  lenses  in  little  cracks  and  crevices, 
which  other  men  of  less  experience  would  gladly 
have  taken  up  in  the  honest  belief  that  it  was  a  rich 
mine.  Finally  we  stumbled  on  a  great  big  dyke, 
with  a  small  streak  of  mineral  along  the  hanging 


48     ROCKS  IN  THE  ROAD  TO  FORTUNE 

wall.  The  old  fellow  went  almost  wild  with  joy, 
and  he  made  his  location  there,  after  results  proved 
his  judgment  to  be  correct,  for  it  was  the  bonanza 
mine  of  Rico  where  the  writer  constructed  a  small 
adobe  smelter.  He  had  found  a  vein  that  was  large 
esiough  to  contain  commercial  bodies  and  the  sur- 
face assays  were  satisfactory. 

After  the  mineral  indication  is  found,  the  first 
step  is  to  locate  and  open  the  vein. 

The  prospector  proceeds  with  pick,  shovel  and 
hand  drills.  Thus  he  sinks  to  a  point  where  he  can 
no  longer  throw  the  rock  out  with  his  shovel.  Up 
t©  a  depth  of  twenty  feet,  by  benching,  he  is  able  to 
do  this  work  alone.  Then  comes  the  windlass  per- 
iod. Admitting  the  prospect  has  increased  in  value 
and  he  is  justified  in  either  hiring  a  man  to  help,  or 
to  give  an  interest  in  the  property  in  lieu  of  wages, 
the  windlass  is  constructed  and  they  work  together. 
When  drilling  both  men  are  in  the  shaft  or  tunnel. 

When  the  shots  have  been  fired,  and  the  ground 
broken,  one  remains  below  and  fills  the  bucket  and 
tile  other  hoists  it  to  the  surface.  If  there  is  any 
ore  of  a  commercial  grade,  it  is  sacked  and  when  a 
ton  is  obtained,  if  it  is  rich  enough,  it  is  shipped  to 
a  smelter,  with  the  results,  general  supplies  are 
bought.  In  this  manner  the  prospect  may  be  devel- 
ofped  to  fifty  feet— often  100  feet.  If  the  ore  still 
continues  and  the  prospect  is  still  promising,  the 
third  step  is  taken.  That  is,  the  windlass  is  dis- 
carded and  a  tripod  and  horse-whim  is  erected.  This 
m  a  little  drum  affair,  worked  by  a  lever,  that  gener- 


u 

Ph 

o 

M 

s 

o 

V 

a 

in 

<U 

^ 

H 

ROCKS  IN  THE  ROAD  TO  FORTUNE         49 

ally  costs  |125.00.  The  horse  is  used  to  draw  the 
loads  to  the  surface.  The  lever  permits  the  bucket 
to  go  down  while  the  horse  is  standing.  Many  thous- 
ands of  dollars  have  been  taken  from  mines  by  a 
horse  whim,  and  if  water  does  not  trouble  the 
miner,  and  ore  exists  an  expensive  hoist  is  not  even 
thought  of.  In  fact,  one  of  the  best  mines  in 
McCabe,  Arizona,  which  paid  from  grass  roots  and 
is  now  one  of  the  big  producers  of  the  country,  was 
worked  with  a  horse-whim  to  a  depth  of  250  feet, 
and  the  writer  used  a  horse-whim  upon  a  mine  In 
Yavapai  County,  that  territory,  to  a  depth  of  300 
feet. 

As  the  work  progresses,  levels  are  run  to  test  the 
size  of  the  ore  body  in  length.  These  levels  are  gen- 
erally run  every  100  feet,  though  some  prospectors, 
where  the  ore  is  commercial,  run  50  foot  levels,  that 
they  may  stope  ore. 

As  the  ore  showing  justifies,  additional  men  are 
put  to  work.  If  the  ore  shoot  is  shallow,  and  discon- 
tinues at  the  depth  of  two  or  three  hundred  feet  the 
prospector  determines  whether  the  showing  justifies 
the  risk  of  sinking  in  barren  ground.  Often  this  is 
done  and  new  ore  bodies  are  opened,  but  if  the  ore 
shoot  is  continuous  at  the  depth  of  300  feet  and  the 
product  of  the  prospect  has  assisted  in  the  payment 
of  the  development,  or  the  ore  has  been  left  stand- 
ing and  justifies  the  expenditure,  a  steam  hoist  is 
put  upon  the  property.  This  generally  costs,  includ- 
ing the  boiler,  not  to  exceed  f  1,500.  With  a  steam 
hoist  of  this  value,  the  prospect  can  be  sunk  to  the 


60    ROCKS  IN  THE  ROAD  TO  FORTUNE 

500  foot  level  and  considerable  ore  extracted,  pro- 
vided the  ore  is  there  to  extract. 

Further  levels  are  run  and  if  the  showing  is  suf- 
ficient and  the  body  is  not  a  small  lense,  they  deter- 
mine upon  the  advisability  of  the  construction  of  a 
mill,  but  the  commercial  prospector  never  considers 
the  mill  until  he  is  positive  that  he  has  ore  enough 
to  run  it.  He  vrould  prefer  to  pay  the  local  mill 
man  his  charges,  for  then  if  his  ore  shoot  should  dis- 
appear, he  is  not  burdenied  with  the  heavy  invest- 
ment that  follows  the  construction  of  a  mill,  which 
is  useless  unless  there  is  ore  for  treatment.  If  the 
prospect  at  this  depth  has  justified  the  labor  and 
there  is  ample  ore  in  sight,  well  opened  and  of  a 
grade  and  character  known  to  the  owners,  the  erec- 
tion of  a  mill  is  a  natural  sequence,  but  if  it  is  a 
smelting  product  the  experienced  miner  ships.  He 
knows  the  folly  of  local  smelter  construction. 

The  prospect  is  now  entering  the  threshold  of  a 
mine.  It  has  an  intrinsic  value.  It  has  ore  exposed 
that  justifies  the  owner  in  saying  it  is  a  mine.  Now 
comes  the  value  of  the  prospect. 

If  it  is  self-sustaining  it  does  not  require  any 
capita],  and  it  is  not  a  mine  until  it  is  self-sustain- 
ing, but  even  though  it  be  a  mine  in  the  full-ac- 
cepted term,  it  may  be  that  it  is  necessary  to  obtain 
a  reasonable  sum  of  money  to  quickly  construct  ma- 
chinery, mills,  etc.,  that  the  reaping  of  large  profits 
may  be  accelerated,  rather  than  wait  for  the  profits 
of  the  mine  to  give  them  the  needed  money.  Then 
follows  incorporation. 


ROCKS  IN  THE  ROAD  TO  FORTUNE         51 

The  unsound  miner  will  start  in  by  placing  a 
ficticious  value  on  the  prospect,  or  will  say  that  it  is 
worth  millions  of  dollars,  simply  because  it  has 
•hipped  some  ore.  If  the  prospect,  reaching  this 
development,  has  made  a  product  of  |500,000,  large 
eadlines  speak  of  the  fact  in  sensational  advertis- 
tfg.  The  fact  that  of  this  |500,000,  there  may  have 
beMi  only  |150,000  net  profit,  is  not  touched  upon. 
The  commercial  miner,  when  called  on  to  invest  in 
such  a  ])r()])(!sitioLi,  enters  th\  mine  and  measures 
up  the  ore  and  (hMlucts  one  liatfjof  itif or. operative 
expensesT^  If  the  net  showing  frojn  these  measure- 
ments and  assays  equals  |200,000,  they  add  one-third 
ofThat  amount  as  its  propective  value,  this  being 
accepted  as'the  prospects  right.  In  other  words,  a 
mine  with  |200,00p/rie|  ore  in  sighrHn'reasonably" 
be  classed  as  worth  |300,000.  They  invest  in  the 
mine  upon  this  basis  of  figuring.  With  the  money 
obtained  they  proceed  to  equip  the  mine  in  first 
class  manner. 

Until^a  prospect  has  been  developed  as  here 
stated,  its  ore  bodies  proven,  it  has  no  commercial 
value.  It  is  a  prospect,  having  of  course,  all  the. 
possibilities  of  value  through  eyentuaUy  proving  ..tQ 
be  a  commercial  mine.  Men  may  hold  prospects  at 
certain  values  and  the  figures  may  be  within  rea- 
son, but  it  makes  no  difference  whether  the  mine 
has  been  developed  by  5,000  feet  of  work,  or  10,- 
000  feet  of  work,  until  it  is  upon  a  dividend- 
paying  basis.  It  is  a  prospect,  and  only  worth,  in- 
trinsically, the  value  of  the  ore  exposed,  not  the 


52    ROCKS  IN  THE  ROAD  TO  FORTUNE 

gross  amount  of  the  ore  exposed,  but  only  the  net 
value  after  being  marketed  with  the  third  added. 

In  the  estimating  of  the  value  of  prospects,  the 
same  leeway  is  accorded  as  is  accepted  system  of  the 
measuring  of  the  ore  in  sight.  That  is  to  say,  engi- 
neers are  justified  in  assuming  that  the  ore  exposed 
will  continue  for  one  hundred  feet  lower  than  the 
exposed  part,  but  be  it  prospect,  invention,  a  new 
railroad  or  any  line  of  industry,  there  is  positively 
no  material  value  to  anything  until  it  proves  its 
ability  to  earn,  excepting,  of  course,  salvage. 

As  a  prospect  is  developed,  its  speculative  value 
increases  or  decreases,  and  where  men  buy  pros- 
pects, paying  from  three  to  five  hundred  thousand 
dollars  for  them,  it  is  because  they  believe  that  it  is 
worth  that  figure  from  a  speculative  standpoint  and 
it  will  always  remain  a  speculation,  until  by  the 
actual  product  of  the  ore  shipped,  it  proves  its  right 
to  the  dignity  of  a  mine. 

Men  point  to  expensive  development  and  heavy 
mechanical  expenditures  as  the  reasons  for  placing 
an  excessive  valuation  on  a  prospect.  The  commer- 
cial miner  knows  full  well  that  50,000  feet  of  devel- 
opment upon  a  non-productive  mine  is  not  worth 
as  much  as  a  50  foot  water-bearing  well  on  a  farm, 
for  where  a  mine  is  open  and  shows  no  commercial 
ore,  it  is  among  the  most  worthless  assets  that  any 
man  could  be  possessed  of.  It  is  simply  a  hole  in  the 
ground.  The  expensive  mechanical  equipment  that 
is  placed  on  it,  is  valuable  if  it  can  be  used  in  the 
commercial  extraction  of  ore,  but  if  there  is  no  ore 


ROCKS  IN  THE  ROAD  TO  FORTUNE         53 

to  extract  commercially,  the  only  value  attached  to 
the  machinery  is  the  possible  opportunity  of  selling 
it  to  some  other  mine  that  is  in  the  process  of  devel- 
opment or  has  ore. 

In  writing  this  article  on  the  prospect,  the  au- 
thor appreciates  that  it  is  not  a  literary  gem.  There 
is  too  much  repetition  relative  to  the  value  of  a 
prospect,  but  that  is  the  intention.  To  in  every  con- 
ceivable manner,  impress  upon  the  layman  that  a 
prospect  is  not  a  mine,  that  it  is  a  question  whether 
it  ever  will  be  a  mine,  and  if  it  were  the  rule  for  the 
writer  to  place  on  every  page  of  this  book  a  few  lines 
of  reading  matter,  they  would  be: 

"A^pros£ectJs_m,aterijLHxX%Ul^^^  until  it  be- 
comes a  commercial  mine." 

^'Sensational  promises  by  inexperienced  men  are 
the  forerunners  of  disaster." 

"Never  build  a  mill  until  you  have  sufficient  ore 
to  run  it  for  four  years."  ^  '  '^    ^"'^ 

"Don't  rely  upon  an  assay,  don't  buy  mining 
stocks  from  brokers,  who  are  not  capable,  by  expe- 
rience, to  draw  valuable  deductions  from  the  evi- 
dence presented  to  them,  and  upon  which  they  ask 
you  to  invest.  A  man  may  be  a  splendid  judge  of 
railroad  values,  yet  a  farce  when  valuing  a  mining 
stock." 


CHAPTER  VII. 

PRESENTING  THE  PROSPECT  TO  THE  IN- 
VESTOR. 

A  prospect  when  offered  for  development  should 
carry  a  plain  statement  of  facts,  the  ore  showing, 
\t»  value,  market  conditions,  and,  upon  what,  the 
owner  bases  his  expectations  of  increased  values. 
It  is  believed  that  the  promoter  or  miner  should 
frankly  say: 

"This  prospect  has  no  commercial  value  to-day, 
but  by  development,  we  believe  it  will  prove  profit- 
able, having  no  value  other  than  that  of  a  specula- 
tive nature,  I  cannot  promise  an  absolute  return, 
but  I  do  promise,  that  if  a  few  thousand  dollars  is 
entrusted  to  us,  the  money  will  be  expended  in 
underground  work,  in  an  effort  to  determine  its 
value.  I  think  the  showing,  as  it  stands  to-day,  is 
worthy  of  the  expenditure  of  |25,000;  after  which 
we  can  determine  as  to  further  work." 

This  is  the  commercial  way,  but  the  writer  re- 
grets that  it  is  not  the  non-commercial  way.  I  know 
to-day  of  prospects  that  are  being  heavily  adver- 
tised, in  the  literature  of  which,  there  is  no  intima- 
tion as  to  the  exact  character  or  size  of  the  ore 
bodies,  and  nothing  in  the  advertisements  but  glit- 

54 


ROCKS  IN  THE  ROAD  TO  FORTUNE        55 

tering  generalities,  skillfully  put  together,  for  the 
purpose  of  attracting  the  small  investments  of 
those,  who,  from  my  experience  in  meeting  them, 
are  not  able  to  sustain  a  loss,  and  are  not  by  exper- 
ience in  the  world's  affairs,  capable  of  forming  -a 
businesslike  opinion  upon  the  merits  of  the  prospect 
presented  to  them  in  such  glowing  form. 

Men  directly,  or  in  some  manner,  indirectly, 
interested  in  the  success  of  those  who  promote  these 
prospects,  defend  the  system  by  saying  that  "The 
loss  made  in  the  purchase  of  penny  stocks  is  small 
and  work  limited  hardships,"  but  why  would  there 
be  any  more  loss  than  is  probable  even  when  the 
prospect  is  opened  upon  commercial  lines  of  de- 
velopment? Why  should  not  every  appeal  to  capital 
be  accompanied  by  the  plain  statement  of  facts — 
there  is  no  discredit  in  asking  investors  to  aid  in  the 
opening  of  a  prospect.  A  commercial  miner  with 
fair  intent,  frequently  asks  help  to  develop,  and  his 
letter  generally  reads: 

"I  have  a  claim  that  gives  evidence  of  being  of 
ample  value  to  justify  the  further  venture  of  |5,000, 
the  sum  needed  to  continue  the  work  to  the  further 
depth  of  100  feet  and  open  two  new  drifts,  by  which 
time  we  can  determine  if  this  property  justifies  fur- 
ther development  or  mechanical  equipment,  we  have 
a  fair  showing  of  ore  that  runs  upon  a  smelter  test 
of  ten  tons,  $25  per  ton,  which,  under  present  con- 
ditions, can  be  made  to  pay  a  little  profit,  but  not 
enough  to  warrant  mill  construction  until  the  ex- 
tent of  the  ore  is  more  defined.    It  is  in  a  good  dis- 


56    ROCKS  IN  THE  ROAD  TO  FORTUNE 

trict.  There  are  three  commercial  mines  here,  and 
local  conditions  are  favorable.  I  have  spent  in  time 
and  money  upon  this  prospect  about  $5,000.  I  will 
give  a  one-fourth  interest  in  the  property  for  $5,000, 
and  the  entire  amount  to  be  expended  in  actual 
work.  If  more  money  should  be  needed  I  will  sell 
another  quarter  to  obtain  the  same." 

This  man  is  justified  in  placing  this  value  upon 
the  mine,  it  is  not  men  like  this  that  add  distrust  to 
the  industry.  Here  we  find  a  mine  maker.  He 
needs  assistance  and  presents  his  case  on  a  square 
presentation  of  facts,  he  is  not  to  be  classed  with 
the  man  who  asks  $500,000  for  a  hole  in  the  ground, 
which  he  claims  is  worth  millions,  with  no  more  evi- 
dence of  commercial  value  than  the  man  who  asks 
for  $5,000.  The  commercial  miner  may  not  succeed, 
but  the  men  who  venture  with  him  are  pleased  to 
consider  other  propositions.  When  they  meet  there 
is  no  ill  feeling,  a  laugh,  a  friendly  hand  shake,  a 
remark,  "Well,  old  fellow,  we  lost."  When  men 
know  what  they  face,  and  meet  an  honest  loss,  they 
never  complain.  It  is  the  loss,  brought  about  by 
misrepresentation  that  hurts. 

Frequently  we  find  men  advertising  that  they 
have  shipped  ore,  and  that  it  runs  so  much  a  ton, 
and  that  they  are  paying  dividends.  This  conveys 
the  impression  to  the  inexperienced  that  the  pros- 
pect stage  is  passed,  when  in  truth,  generally  in 
these  instances,  the  prospect  stage  is  simply  well 
In  advance  of  its  infancy  period,  they  do  not  state 
the  amount  of  dividends  they  have  paid,  they  do 


ROCKS  IN  THE  ROAD  TO  FORTUNE        57 

not  state  plainly  the  actual  net  profit  from  ore  ship- 
ments over  and  above  capital  expenditure  in  its 
extraction,  for  there  is  no  profit  except  the  net 

Of  late  we  find  men  advertising  prospects  at  ten 
cents  a  share,  without  stating  the  amount  of  the 
capitalization.  This  has  been  explained  to  me  bj 
men  who  consider  themselves  more  intelligent  than 
the  masses,  that  the  public  does  not  reason  on  the 
total  capitalization,  that  they  want  the  shares 
cheap,  and  lots  of  them,  and  that  if  they  published 
the  fact  that  they  had  five  million  shares  they  would 
lose  many  subscribers  that  they  succeed  in  inter- 
esting by  non-publication  of  the  total  amount  of 
shares. 

This  evasion  of  facts  is  common.  Any  man  has  a 
right  to  an  exalted  opinion  of  himself  or  his  prop- 
erty, and  there  is  no  law  that  can  take  from  him 
this  right,  provided  his  opinions  are  not  expressed 
in  a  manner  to  lead  someone  to  believe  them,  and  in 
believing  them,  part  with  their  money.  Thus  we 
find  inexperienced  prospectors  who  claim  the  right 
to  assert  that  their  prospects  are  worth  millions  of 
dollars,  upon  the  theory  that  no  man  can  tell  what 
a  prospect  is  worth  until  it  is  developed,  and  as  evi- 
dence of  the  soundness  of  their  reasoning,  they  point 
to  the  great  dividend  paying  mines  as  having,  at 
one  time  in  their  career,  been  prospects. 

But  how  far  can  a  promoter  extend  his  belief  for 
the  purpose  of  inducing  an  investor  to  buy  the 
shares  that  brings  the  promoter  his  commission,  or 
some  other  form  of  personal  profit  before  the  sound- 
ness of  his  belief  is  verified?    The  fact  that  man  has 


58    ROCKS  IN  THE  ROAD  TO  FORTUNE 

not  yet  mastered  the  science  of  second-sight,  or  the 
ability  to  know  that  a  prospect  will  or  will  not 
develop  into  a  commercial  mine,  before  work  is  done, 
have  enabled  those  of  an  equivocal  turn  to  defend 
their  acts,  by  the  time  honored,  much  abused  excuse 
that  "they  honestly  believed  all  they  said  about  the 
mine  or  prospect,  and  that  the  loss  resulted  from 
poor  judgment  rather  than  dishonest  intent;  that 
they  believed  the  ore  was  continuous  to  great  depth, 
and  that  the  values  would  increase  largely  with 
depth;  that  the  mill  they  advised  to  be  constructed 
would  save  99  per  cent,  of  the  values." 

A  belief  is  allowed  by  law;  in  general  aflSdavits, 
the  information  is  cited  upon  belief,  but  the  law 
with  its  basis  of  equity,  expects  the  belief  to  be  well 
founded,  and  honest  belief,  not  a  mercenary  one; 
there  must  be  some  semblance  of  fact,  some  sound 
reason  by  precedent  closely  associated  with  the 
point  in  question.  We  take  the  ground  that  belief 
is  not  a  defense,  to  fraud,  that  while  a  man  reason- 
ably believes  that  ore  known  to  exist  in  commercial 
bodies  at  the  surface,  would  extend  500  feet  deep, 
but  where  a  promoter  is  interested,  more  in  the 
gathering  of  commissions  or  the  sale  of  his  personal 
shares,  this  right  to  express  an  unfounded  belief  to 
induce  others  to  part  with  their  money,  is  gravely 
questioned.  Has  he  the  right  to  claim  that  a  body 
of  ore  will  continue  for  thousands  of  feet  and  that 
its  values  will  increase,  when,  in  circulating  this  be- 
lief he  personally  gains  and  others  lose?  Is  that  not 
stretching  the  right  of  belief  near  the  line  of  false 


ROCKS  IN  THE  ROAD  TO  FORTUNE        69 

pretense?  This  "belief"  defense,  has  I  hope,  abont 
run  its  course,  the  law  has  become  broader  and 
demands  evidence. 

In  a  recent  law  case,  which  resulted  in  the  im- 
prisonment of  nearly  everybody  connected  with  the 
mine  promotion,  these  theories  were  advanced,  and 
the  prosecuting  attorney  brought  up  the  question  as 
to  the  limit  of  a  man's  belief  as  to  the  depth  of  ore, 
and  in  this  he  was  sustained  by  the  Judge,  who  said 
that  in  all  mining  communities  it  is  recognized  that 
no  one  can  tell  how  deep  an  ore  body  will  go,  but  it^ 
was  not  logical  to^fix  a  greater  degth  than  500  feet 
in  precious  metal  mines,  even  under  tHe  most  favor- 
ible  conditions  and  appearance  of  ore  strength. 
This  deduction  was  proper,  because  from  an  exper- 
ience of  thousands  of  ore  sTioots^we  find  that  the 
surface^ore  bodies  only,  in  rare  cases,  exceed  that 
depth;  then  it  becomes  necessary  to  find  another 
ore  body,  which  is  speculation,  especially  if  the  ter- 
ritory is  not  well  knowrL.„ 

If  a  promoter  guardedly  words  his  literature  s(» 
that  he  evades  responsibility,  the  investor  should 
hesitate.  If  a  miner  believes  that  his  ore  will  in- 
crease in  depth,  both  as  to  size  and  value,  and  there 
are  other  mines  in  the  district  that  have  proven  the 
fact  by  actual  depth,  then  the  belief  is  in  a  measure 
admissable;  but  if  there  is  no  local  evidence  to  sus- 
tain the  claim,  the  right  is  questionable.  It  is  the 
same  with  the  mill  which  the  promoter  or  miner 
asks  funds  to  construct,  upon  the  claim  that  it  will 
save  99  per  cent,  of  the  ore  contents.    The  belief 


60    ROCKS  IN  THE  ROAD  TO  FORTUNE 

should  be  backed  at  least  by  some  fact,  some  mill, 
that  has  actually  accomplished  it,  on  a  like  grade  of 
ore.  The  foundation  must  exist  for  the  belief.  A 
mere  wild  guess  or  unfounded  theory  is  not  enough. 

Following  a  belief  that  is  based  upon  informa- 
tion given  by  a  knave  or  a  fool,  is  the  right  of  any 
man  if  he  desires  to  risk  his  own  money,  and  has  no 
regard  for  his  family,  but  where  a  man  extends  the 
result  of  that  belief  into  the  homes  of  his  friends, 
or  those  whom  he  influences  by  the  expressions  of 
fact,  when  it  is  only  belief,  and  others  are  led  to 
make  unsound  investments  in  so-called  mines,  then 
the  belief  is  not  deserving  of  the  term  "honest,"  it 
becomes  dangerous,  for  the  gaining  of  confidence 
that  results  In  loss  to  those  whose  confidence  is  ob- 
tained through  unsound  argument,  not  based  upon 
facts,  is  in  a  measure  a  crime,  and  the  law  handles 
the  case  upon  a  basis  of  fact,  not  belief. 

The  reader  must  understand  that  unless  he  insists 
upon  a  plain  statement  of  facts  governing  such 
points  as  the  author  has  endeavored  to  outline  in 
this  boolf,  he  may  not  be  able  to  form  a  healthy  con- 
clusion as  to  what  he  is  really  investing  in.  If  it  is 
a  prospect,  a  study  of  the  various  chapters  on  pros- 
pects will  aid  him  materially  in  asking  the  ques- 
tions, he  should  demand  an  autographic  reply,  and 
not  an  oral  one,  for  the  promoter  is  criminally 
liable  for  misrepresentation,  if,  what  he  asserts 
over  his  signature  is,  in  the  end,  found  to  be  untrue. 

The  advice  of  the  author  to  the  small  investor  is 
to  buy  into  good  ore  proven  prospects,  but  to  ascer- 


ROCKS  IN  THE  ROAD  TO  FORTUNE         61 

tain  the  cash  valuation  placed  upon  the  same  by 
the  figures  advertised.  If  a  prospect  without  ore  in 
sight  is  selling  its  stock  upon  a  valuation  of  over 
$100,000,  it  is  safe  to  leave  it  alone.  You  may  lose 
once  in  a  hundred  times,  but  the  chances  are,  you 
will  win  ninety-five  times  out  of  a  hundred  by  not 
being  a  party  to  the  loss,  through  wild  prospect  in- 
vestments. 

The  inexperienced  man  claims  that  his  past 
development  work,  on  a  prospect  should  be  consid- 
ered as  an  asset.  The  author  agrees  with  this,  pro- 
vided that  at  the  time  the  estimate  of  past  work  is 
made,  that  there  is  ore  in  the  propect  of  commercial 
value;  but  sweeping  as  the  assertion  may  be,  the 
author^  claims  that  a  prospect  is  not,  intrinsically^ 
worth  a  dollar,  aside  from  mechanical, ^a.lva^^^gYen- 
thongli'  it  has  10,000  feet  of  work  upon  it,  unless  it 
shows  ore  iu  coinniercial  bodies,  eliminating,  how- 
ever, the  speculative  value  that  the  owner  ma^Mpi,-^ 
self  place  upon  it.  We  speak  from  the  intrinsic 
point  of  values — the  estimating  of  what  a  man  can 
make  by  the  extraction,  shipment  or  treatment  of 
the  ore.  This  is  directly  pointed  to  the  promoter, 
who  has  simply,  for  effect,  shipped  a  few  tons  of  ore, 
without  figuring  the  actual  cost,  and  advertises, 
"This  is  a  mine  and  not  a  prospect." 


CHAPTER  VIII 
THE  FOLLY  OP  RELYING  UPON  AN  ASSAY. 

The  assay,  and  the  importance  to  be  placed  upon 
the  same,  is  worthy  of  a  volume.  With  the  excep- 
tion of  the  "opinion''  and  "belief  evil,  there  is  none 
greater  than  the  assay  folly.  With  the  exception 
of  its  uses — to  determine  the  value  of  a  smelter  or 
mill  shipment,  or  to  give  the  prospector  a  line  upon 
the  character  of  his  discovery,  the  increase  or  de- 
crease of  the  ore  values  as  development  in  a  mine 
or  prospect  progresses — the  assay  from  the  inves- 
tor's standpoint  is  commercially  worthless. 

If  there  is  one  thing  that  causes  the  commercial 
operator  to  fight  shy  of  a  promoter,  it  is  his  display 
advertisements  claiming  a  mine  or  prospect  to  be 
of  great  value  simply  because  an  assay  shows  ore 
running  from  flOO  to  |10,000  per  ton.  I  have  seen 
promoters  asking  capital  to  invest  in  prospects, 
which  they  class  as  mines,  without  giving  any  evi- 
dence that  they  have  ever  shipped  a  car  of  ore  to 
smelter  or  mill,  basing  their  rights  to  sell  stock  at 
an  enormous  valuation  placed  on  a  hole  in  the 
ground  simply  on  an  assay  of  some  small  piece  of 

rock. 

62 


ROCKS  rSyTHE  ROAD  TO  FORTUNE         63 

Among  those  who  mine  ore  for  profit  the  appear- 
ance of  an  assay  of  high  grade  is  received  only  as 
the  result  of  a  "rar^  specimen,"  and  the  discovery 
is  not  treated  seriously.  Only  in  remote  cases  has 
high-grade  ore  been  found  to' be' commercial. 

"  The  writer  owns  a  mining  prospect  near  McCabe, 
Arizona,  from  which  ore  worth  |30,000  a  ton,  assay 
value,  has  been  obtained.  The  quartz  was  literally 
held  together  by  strings  of  gold;  but  its  discovery, 
while  beautiful,  meant  nothing  commercial.  A  few 
pounds  extracted,  then  the  same  low-grade  mineral 
followed.  Those  rich,  localized  specimens,  some- 
times amounting  to  a  few  sacks,  are  the  delusive 
evidence  of  wealth  that  the  inexperienced  use  in 
both  deceiving  themselves  and  the  buyer  not  versed 
in  the  known  ways  of  nature.  In  deposits  where 
there  is  no  positively  defined  fissure  these  rich 
bodies  are  sometimes  extensive,  but  they  are  local 
and  always  give  way  to  lower  grades. 

One    of    the    greatest    commercial    miners    of 
America  will  refuse  an  interview  to  a  man  seeking 
to  interest  him  in  a  prospect,  through  the  display  of 
a  specimen  of  rare  beauty,  yet  will  devote  hours  to 
e  proposition  represented  by  a  mill  or  smelter 

ement  of  ore  running  less  than  |15  a  ton.  There 
is  a  chance  that  the  latter  may  be  commercial. 
There  have  been  only  seven  mines  of  the  picture  ore 
character  that  have  ever  sustained  records  as  pro- 
ducers. The  risk  of  average  is  too  great  for  the  com- 
mercial  miner  to  take. 

An  assay  is  ma^e^  for  two  purposes;  first,  to  de- 


64    ROCKS  IN  THE  ROAD  TO  FORTUNE 

termine  if  there  is  any  actual  value  in  a  small  piece 
of  rock  which  may  have  been  found  by  some  pros- 
pector. If  the  piece  shows  value,  he  prospects  fur- 
ther. If  the  assay  is  from  a  vein  that  shows  ore  in 
commercial  bodies,  and  the  value  proves  that  it 
contains  ample  metal  to  make  it  pay,  then  the 
prospector  can,  if  conditions  are  perfect,  commence 
to  ship.  He  does  not  require  money  beyond  his  out- 
fit, for  from  the  profits  of  his  first  100  tons  he  im- 
proves his  mine  equipment,  and  ultimately  his  prop- 
erty becomes  a  dividend  payer;  but  there  have  been 
less  than  300  quartz  mines  that  have  paid  their  own' 
way  from  the  day  of  their  discovery, 

Eecently  the  writer  was  told  by  a  promoting 
miner,  engaged  in  the  search  for  capital  to  open  a 
certain  prospect,  with  no  positive  commercial  rec- 
ord to  recommend  it,  nothing  but  local  report  and 
old  workings  and  some  shipments  many  years  ago, 
and  no  evidence  that  it  ever  paid  a  dollar,  that  he 
had  eight  inches  of  thousand-ounce  ore  already 
opened  for  a  length  of  twenty-five  feet.  I  put  the 
query  to  him:  Why  he  did  not  ship  at  least  one  ton 
of  the  ore  and  prove  it;  that  it  would  make  his  ef- 
forts easier  and  benefit  the  camp.  Then  his  search 
for  capital  would  be  ended.  The  answer  was  that 
I  was  a  "pessimist!" — not  to  enumerate  several 
other  unpleasant  characters.  The  writer  did  not 
doubt  that  a  small  piece  of  rock  taken  from  the  vein 
in  question  would  assay  one  thousand  ounces  of  sil- 
ver to  the  ton,  or  about  |600  value,  for  I  had  mined 
extensively  in  the  same  mountains,  but  our  ship- 


ROCKS  IN  THE  ROAD  TO  FORTUNE        66 

ments  from  seven  hundred  tons  upon  commercial 
test  resulted  in  less  than  |40  a  ton,  though  we  fre- 
quently had  small  pieces  of  ore  that  would  assa^^ 
$1,000.    The  following  conversation  ensued: 

"Why  don't  you  ship  some  of  this  ore?  That  dis- 
trict needs  capital,  and  if  you  have  opened  a  shoot 
of  eight  inches  wide  by  even  twenty-five  feet  long, 
it  will  create  an  excitement;  for  the  shoot  may  de- 
velop into  two  hundred  feet  in  length  and  several 
hundred  feet  deep.  Our  mine,  which  lies  just  unde* 
yours,  has  an  ore  shoot  seven  hundred  feet  long  and 
five  hundred  feet  deep.  So  the  precedent  of  extent 
is  there." 

"I  do  not  believe  in  robbing  a  mine.  We  have 
this  ore  and  want  to  work  it  scientifically  and  open 
it  right." 

"How  do  you  know  you  have  eight  inches  ol 
thousand-ounce  ore?  I  know  you  have  never  shipped 
a  ton  from  this  mine  since  you  owned  it." 

"I  have  had  such  assays  as  satisfied  me.  We 
know  it  is  there  and  we  do  not  want  to  rob  the 
mine." 

That  is  about  as  far  as  one  can  get  with  that 
class  of  men,  as  it  is  not  to  their  interest  to  reason. 
Here  was  an  instance  where  strenuous  appeals 
were  made  to  investors  to  buy  stock  in  this  pros- 
pect, as  we  term  it — for  it  has  not  arrived  at  the 
dignity  of  a  dividend  payer — on  a  basis  of  a  heavy 
capitalization  seeking  money  at  a  sacrifice  of  share 
values  when,  according  to  the  manager,  he  had 
then  in  sight  that  which  they  wanted  to  obtaiB 


66,    ROCKS  IN  THE  ROAD  TO  FORTUNE 

from  the  investor — money.  The  remark,  "We  do 
not  want  to  rob  the  mine,"  was  not  well  timed.  To 
my  way  of  thinking,  the  mine  should  be  robbed  a 
little,  then  there  would  be  no  necessity  in  having 
the  public  share  in  a  risk.  If  the  writer  had  an 
eight-inch  streak  of  one-thousand-ounce  ore  at 
even  14,000  feet  elevation,  with  nothing  but  a  Jack 
trail,  and  did  not  own  even  a  pack  animal,  with  a 
railroad  twenty  miles  away,  there  would  be  no  ap- 
peal for  capital,  for  that  ore  would  be  commercial 
in  the  most  remote  quarters  of  the  American  conti- 
nent. A  pick,  a  few  drills,  a  single  hand-hammer,  a 
little  food,  one  ore  sack,  that  is  all  he  would  ask. 
A  hundred  pounds  of  such  ore  is  worth  about  |35. 
From  an  eight-inch  streak  any  man  can  mine  two 
hundred  pounds  a  day.  In  a  week  he  could  pack 
enough  of  this  ore  to  the  railroad  to  buy  a  little 
more  food  and  a  couple  of  burros.  In  two  weeks 
he  could  be  shipping  one  ton  a  day.  More  burros, 
and  then — the  dreams  of  wealth  realized!  Where 
the  will  lies  and  the  ore  exists,  the  miner  who  wants 
to  mine  will  find  a  way;  but  where  there  is  more 
money  in  selling  stock,  the  way  is  not  always 
searched  for. 

Assays  of  small  pieces  also  encourage  the  miner 
to  prospect,  in  hope  of  opening  ore  in  commercial 
bodies.  Another  assay  is  the  control  that  is  taken 
as  an  average  of  a  large  number  of  tons,  either 
shipped  in  the  crude  form  or  in  concentrates.  Thus 
the  shipper  has  a  check  on  the  smelter  to  which  he 


ROCKS  m  THE  ROAD  TO  FORTUNE        67 

sends  his  ore  for  sale  or  treatment.  This  is  called 
the  Umpire. 

When  a  promoter  says  the  assay  returns  from  a 
shipment  of  from  ten  tons  to  a  thousand  tons  show 
the  ore  to  contain  mineral  that  will  pay  after  de- 
ducting all  charges,  then  the  assertion  is  of  value, 
and  you  can  seriously  consider  an  investment,  for 
unless  a  mine  has  ore  in  fairly  large  bodies  it  is  not 
possible  to  make  a  commercial  shipment,  except  in 
cases  where  gray  copper  ore  is  found  in  small  un- 
staple  lenses  near  the  surface,  as  is  often  the  case; 
then  the  prospect  is  not  termed  commercial  until  at 
least  three  hundred  feet  in  depth  is  obtained.  Many 
prospects  make  non-commercial  shipments  by  tedi- 
ously sorting  the  ore.  I  have  known  prospects  that 
gave  specimens  that  assayed  from  |500  to  $10,000, 
yet  you  could  not  have  extracted  one  ton  of  it  in  ten 
years. 

Again,  we  have  seen  prospects  that  did  for  a 
limited  period  ship  several  hundred  tons  of  high- 
grade  ore  extracted  at  excessive  cost  during  the  pe- 
riod of  development.  Often  every  dollar  of  this  ore 
has  actually  cost  three  dollars — in  time,  supplies, 
transportation  and  smelting.  Consequently  it  was 
non-commercial.  Yet  the  gross  values  of  these 
shipments  are  made  a  part  of  the  prospectus. 
Many  veins  that  carry  from  two  to  four  feet  ol 
ore  that  only  run  |10  in  commercial  bodies  will 
show  specimens  that  run  $1,000,  and  it  is  generally 
these  small  specimens  that  are  assayed  and  the  re- 
sults published.    They  mean  nothing  of  value  to  the 


68    ROCKS  IN  THE  ROAD  TO  FORTUNE 

commercial  miner,  who  would  prefer  to  see  an  assay 
of  f  15  from  a  hundred-ton  shipment  to  a  smelter  or 
local  mill. 

I  have  discussed  the  assay  question  with  men 
who  were  seeking  the  aid  of  capital  and  explained 
the  fallacy  of  mine  values  from  an  assay;  in  many 
cases  men  have  immediately  proceeded  to  sample 
their  property  and  ship  several  carloads  to  deter- 
mine the  actual  value;  in  several  cases  the  proper- 
ties have  been  abandoned  as  worthless,  and  the 
owners  were  broad-minded  enough  to  acknowledge 
their  mistakes  and  thank  us  for  the  experience.  In 
other  cases  the  mines  were  found  to  be  deserving  of 
capital  expenditure  and  further  improved,  labor- 
saving  devices  installed,  and  commercial  mining  to- 
day results,  and  thousands  of  dollars  are  made  an- 
nually. But  the  great  majority  of  those  cases  were 
under  the  directorship  of  practical  miners,  who  real- 
ized that  upon  the  returns  of  their  ore  depended 
their  profits.  There  were  no  stockholders  behind 
them. 

In  some  cases  the  advice  was  received  with  re- 
sentment, with  the  remarks  that  they  knew  the 
value  of  their  own  ore  and  did  not  require  smelter 
returns,  and  that  any  stockholder  could  go  into  the 
mine  and  take  samples  for  himself.  Seldom,  how- 
ever, were  the  properties  represented  by  such  men 
self-operated.  They  were  generally  run  by  Eastern 
corporations  that  desired  favorable  news  from  the 
mines,  in  order  that  the  sale  of  stock  might  be  accel- 


ROCKS  IN  THE  ROAD  TO  FORTUNE         69 

erated,  and  the  managers  at  the  works  did  not  hesi- 
tate to  draw  upon  their  imagination. 

The  average  stockholder  does  not  know  the  car- 
dinal principles  that  go  to  make  commercial  mining. 
He  does  not  know  the  value  of  rock,  or  what  part 
of  the  vein  is  pay  ore,  or  the  parts  that  will  not  pay. 
In  prospects  carrying  a  lead  streak  it  is  easy  to  ob- 
tain good  samples.  Some  mine  promoters  can  go 
into  ecstacies  over  a  body  of  non-commercial  ore, 
and  carry  conviction  to  the  inexperienced,  but  not 
to  the  practical  miner.  He  wants  to  see  the  value 
of  the  ore  in  carload  lots.  I  have  usually  found  that 
where  a  man  claimed  to  have  large  bodies  or  rich 
ore,  and  would  not  ship  a  few  tons,  it  was  because 
he  did  not  want  to  take  the  risk  of  his  ore  not  run- 
ning as  high  as  the  assay  or  as  he  claimed,  and  thus 
aversely  answer  his  stock  sale  arguments. 

Ore  bodies  are  not  continuous  in  any  mine.  The 
paj  material  o_cc,^rs^jn^^boots — some  small,  others 
large.  One  ore  shoot  in  the  Consolidated  Virginia 
"Mnes  produced  |114,000,000.  Other  shoots  also 
produced  millions;  others,  hundreds  of  thousands; 
then  again  a  few  thousands.  There  is,  however,  al- 
ways a  limit  to  the  shoot  and  the  value  of  its  con- 
tents, as  explained  in  the  chapter  on  prospects.  Ore 
bodies  are  larger  in  some  places  than  in  others. 
When  a  miner  understands  his  vein,  he  knows  that 
his  ore  bodies  may  be  one  foot,  and  then  swell  out 
to  four  feet;  then  down  again  to  six  inches;  then 
again,  in  running  on  the  vein  a  length  of  twenty-five 
feet,  the  ore  will  swell  to  two  feet  in  width,  so  that, 


70    ROCKS  IN  THE  ROAD  TO  FORTUNE 

until  a  mine  is  opened,  the  value  of  its  ores  and 
ayerage  size  of  its  shoots  absolutely  known,  an  assay 
is  of  but  little  commercial  value;  for  the  reason  that 
where  the  vein  of  ore  is  concentrated  into  a  small 
body,  the  values  are  naturally  higher  than  at  the 
spot  where  the  vein  exposes  four  or  five  feet  of  min- 
eral. Many  promoters  take  their  samples  of  ore  and 
assays  from  the  concentrated  portions;  the  commer- 
cial miner  takes  his  averages  from  all  parts  of  the 
vein,  in  the  pinches  as  well  as  the  swells,  that  he 
may  have  an  average  of  what  he  will  actually  ship, 
as  the  profits  come  only  from  what  is  shipped.  1 
know  of  promoters  who,  while  operating  mines,  by 
accident  open  the  shoot  at  the  ^oint  where  the 
swells  make  the  ore  showing  four  or  five  feet. 
Often  the  work  stops  at  that  point  and  the  large 
ore  body  is  kept  to  show  stockholders;  and  they 
base  their  calculations  upon  the  possible  tonnage 
of  the  mine  by  the  magnitude  of  this  face  of  ore, 
whereas  this  four  feet  of  ore  may  not  hold  that  size 
for  a  depth  of  ten  feet;  then  again  it  may  run  along 
for  fifty  feet  or  a  hundred.  The  only  way  to  test 
the  actual  value  of  the  mine  is  to  open  it  to  a  rea- 
sonable extent  and  ship  sufficient  ore  in  carload  lots 
to  get  an  average  of  its  commercial  value.  Estima- 
tion of  the  contents  of  an  unopened  mine  from  an 
assay  is  value  founded  upon  dreams. 

Pay  no  attention  to  assays  from  small  pieces  of 
rocks,  but  ask  the  promoter:  "How  many  tons  of 
ore  have  you  shipped  from  this  prospect  while  it  has 
been  under  your  control?"    Do  not  accept  from  him 


ROCKS  IN  THE  ROAD  TO  FORTUNE        71 

the  assertion  that  the  prospect  has  shipped  ore 
under  some  other  person's  administration.  If  a  man 
is  not  able  to  ship  ten  tons  or  one  hundred  tons  of 
ore  for  the  purpose  of  demonstrating  the  commer- 
cial character  and  value  of  the  ore,  then  it  is  a  prob- 
lem and  is  classed  as  a  lean  prospect;  and  a  pros- 
pect is  only  worth  what  you  can  get  for  it  on  its 
speculative  values.  It  is  true  that  prospects  often 
develop  into  million  dollar  mines,  but  the  miner's 
usual  risk  follows  them.  Assays  do  not  change  the 
prospect  into  a  mine. 

If  you  are  told  that  there  are  great  bodies  of 
shipping  ore  in  some  old,  abandoned  dump,  ask  how 
many  tons  they  have  actually  shipped  to  know  this. 
Reason  should  tell  you  that  the  mining  districts  are 
full  of  men  who  will  gladly  ship  any  ore  that  will 
pay  to  handle,  especially  if  it  lays  above  ground  and 
there  is  a  market  at  hand. 

Assays  are  the  stock-in-trade  of  the  inexper- 
ienced vendor  of  mining  shares.  XTpoh  them  he  bases 
his  promises  of  profit.  They  are  only  the  guide  posts 
of  ore  values  to  the  commercial  miner.  Be  careful 
of  investing  upon  assays.  Demand  mill  or  smelter 
returns  from  a  few  tons:  for  if  a  prospect  is  deserv- 
ing of  development,  even  a  twenty-foot  hole  should 
show  six  or  seven  tons  of  ore:  enough  to  make 
known  its  character  and  grade. 


CHAPTER   IX 

ILL  ADVISED  MILL  AND  SMELTER  CON- 
STRUCTION. 

One  of  the  excuses  for  asking  for  more  monej, 
when  the  "enormous  advance  in  values"  argument 
has  run  its  course,  and  the  promised  dividends  have 
not  materialized,  is  that  of  the  necessity  of  a  mill  to 
treat  the  ore,  and  exhaustive  figures  are  quoted  to 
show  that,  with  a  mill,  the  profits  that  did  not  come 
will  then  surely  follow.  Some  promoters  use  this 
argument  before  they  open  their  mines,  because 
they  "believe"  the  ore  exists.  They  look  with  some- 
thing akin  to  pity  upon  the  experienced  miner, 
who  endeavors  to  reason  that  it  is  better,  first,  to 
open  the  property.  It  is  desired  that  the  reader 
should  study  this  mill  question  with  the  same  care 
that  he  gives  to  the  chapter  on  prospects. 

First,  admitting  that  the  ore  exists,  its  volume 
and  value  should  be  known,  and  the  character  of  the 
necessary  treatment.  Second,  if  the  ore  is  called 
"free  milling,"  the  question  should  be  asked  as  to 
the  method  that  has  been  actually  employed  to  de- 
termine whether  it  is  milling,  as  mere  opinion  on 
assay  is  of  little  value.  Laboratory  tests  are  not  re- 
liable.   Nothing  is  so  safe  as  an  actual  mill  run  of 

72 


ROCKS  IN  THE  ROAD  TO  FORTUNE        73 

one  hundred  tons,  or  one  thousand  tons  treated  in 
8ome  other  person's  mill — not  one  built  with  your 
money  before  you  have  made  a  reliable  run.  If  a 
mine  is  expected  to  supply  a  mill  with  an  uninter- 
rupted tonnage,  it  is  no  great  labor  to  satisfy  its 
owners  by  actually  shipping  a  few  hundred  tons  of 
ore  to  settle  this  question.  Commercial  miners  will 
ship  tonnage  to  a  mill  even  at  a  loss,  in  order  that 
this  problem  may  be  solved.  Recently  the  writer 
expended  |7,000  in  the  purchase  of  horses  and 
wagons  just  to  test  a  mine  by  hauling  to  smelters 
a  few  hundred  tons  of  ore. 

A  miner  who  will  ask  for  money  with  which  to 
construct  a  mill,  before  he  has  fully  tested  one  hun- 
dred tons  of  ore  in  a  custom  plant,  is  not  favorably 
received  by  commercial  miners.  And  if  he  is  inter- 
ested in  the  sale  of  a  mining  stock,  claiming  the 
needs  of  a  mill,  and  is  not  willing  to  prove  the  char- 
acter of  his  ore  by  a  few  carloads  shipped  to  other 
mills, — then  it  is  safe  to  study  his  proposition.  If 
the  ore  is,  beyond  doubt,  free  milling,  and  there 
is  unquestionable  evidence  that  ample  is  exposed  to 
justify  the  construction  of  a  mill,  then  the  crucial 
question  is:  Have  you  enough  water  to  run  the 
mill  all  the  year?  Lack  of  water  is  the  death  blow 
to  milling.  Some  men  build  where  only  a  spring 
exists,  to  usually  meet  failure  instead  of  success. 
Free  milling  ore  is  the  exception  rather  than  the 
rule.  Concentration  is  the  coming  system,  and  cus- 
tom mills  built  upon  those  lines  will  produce  profits, 
provided  the  ore  is  there.    But  there  is  a  distinction 


74    ROCKS  IN  THE  ROAD  TO  FORTUNE 

between  free  mill  amalgamation  and  a  concentrator. 

Study  well  the  proposition  to  build  a  mill,  as 
millions  have  been  lost  in  their  ill-advised  construc- 
tion, as  millions  have  been  made  by  miners  who 
had,  and  have,  no  mills.  While  a  few  inexperienced 
men  will  continue  in  this  folly,  the  mill  building 
craze  will  never  again  obtain  substantial  footing 
among  commercial  miners.  Here  they  profit  by  ex- 
perience. Large  smelting  and  refining  companies 
have  eliminated  that,  so-called,  necessity. 

For  many  years,  Colorado  was  a  faithful  pioneer 
in  new  milling  systems  which  constantly  spring  up. 
With  the  exception  of  the  Carson  River,  Nevada,  ex- 
periments, there  was  no  country  so  willing  to  im- 
prove, or  take  to  its  heart  evei-y  mechanical  char- 
latan that  came  along.  But  those  days  are  gone 
forever,  and  now,  where  a  free  amalgamation  mill 
is  properly  located,  and  the  ore  is  absolutely  free, 
which  is  the  case  in  many  parts  of  California  and 
Dakota, — the  profits  will  be  large.  The  mining  dis- 
tricts are  filled  with  the  skeletons  of  mills  and  smel- 
ters built  for  single  mines.  Inquiry  always  brings 
forth  the  information  that  it  was  "An  Eastern  Com- 
pany." A  mine  may  be  of  commercial  value,  and 
yet  become  a  failure  with  its  own  mill,  for  the  rea- 
son that  it  cannot  produce  sufficient  tonnage  to  keep 
it  in  profitable  activity,  even  though  the  treatment 
is  successful. 

One  good  mill  in  a  commercial  district  can  be 
made  to  do  the  work  of  ten  mines  of  separate  own- 
ership.   This  is  the  progressive  system  that  commer- 


ROCKS  IN  THE  ROAD  TO  FORTUNE         75 

cial  miners  are  following, — for  it  is  now  known  that 
there  are  few  mines  which  can,  by  their  own  pro- 
duct, keep  even  a  twenty-stamp  mill,  or  concentra- 
tor, in  constant  activity.  Experienced  men  know 
the  class  of  mills  that  treat  ores  profitably.  They 
know  that  concentration  is  the  coming  system  for 
seventy  per  cent,  of  all  classes  of  ore.  They  realize 
that  it  is  better  to  be  successful  in  an  old-fashioned 
commercial  manner  than  an  artistic  failure  under 
more  glittering  auspices.  Their  methods  are  mod- 
est; that  is  one  reason  why  the  Eastern  investor 
seldom  hears  of  them. 

If  the  proposition  presented  carries  a  smelting 
product,  then  the  problem  is  simply  the  volume  of 
ore  known  to  exist,  the  value  of  the  same,  the  cost 
of  extraction  and  transportation,  and  the  smelting 
charges.  There  is  nothing  else  for  the  investor  to 
consider.  But  that  those  questions  must  be  an- 
swered is  plain;  otherwise,  he — the  investor — will 
assist  in  the  architectural  art  of  erecting  a  monu- 
ment to  the  folly  of  inexperience. 

Often  the  promoter  will  claim  tLat  he  has  ample 
ore,  but  that  the  smelters  rob  him,  and  that  he  seeks 
capital  with  which  to  build  his  own.  If  it  is  the 
construction  of  a  concentrator  that  is  involved,  and 
sufficient  tonnage  has  been  made  to  establish  the 
fact  that  the  ore  is  adapted  for  concentration,  the 
request  for  capital  will  receive  consideration  from 
local  commercial  operators.  But  it  is  indeed  a  poor 
miner  who  to-day  talks  individual  smelters. 


76    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Colorado's  wonderful  mining  success  is  indebted 
to  the  admirable  treatment  accorded  the  miners  by 
smelter  institutions.    Year  after  year,  as  conditions 
make  it   possible,   the  smelter   rates  have  been  re- 
duced.   Each  year  we  are  able  to  treat  at  a  profit 
a  grade  of  ore  that  was  not  profitable  the  previous 
year.     It  has  only  been  a  short  time  ago  that  the 
flat  charge  of  |14  a  ton  was  fixed  on  ores.    To-da.y 
we  have  a  flat  charge  of  |6  a  ton,  independent  of 
silica  contents;  and  the  writer  is  to-day  shipping 
concentrates  upon  which  only  a  three  dollar  charge 
is  fixed.    It  is  less  than  a  decade  since  zinc  was  the 
assassin  of  the  industry,  and  many  miners  were 
ruined  by  it.    The  author  is  to-day  treating  for  the 
public,  lead  and  zinc  ores  from  the  mines  of  George- 
town, Colorado,  which  a  short  time  ago  were  not 
even   taken    from    the  stopes.      These    metals    are 
needed,  and  the  smelter  pays  for  them.     There  is 
only  one  thing  more  that  the  smelters  can  do,  and 
that  is,  to  lower  the  limit  for  payments  for  base 
metals,  in  order  that  the  miner  may  receive  a  larger 
per  cent,  for  his  copper  and  lead,  and  a  further  re- 
duction of  the  five  per  cent,  gold  basis.     This  is  a 
hardship,  but  it  will,  in  time,  be  remedied. 

Experience  has  shown  that  where  a  miner  i« 
active  in  his  condemnation  of  the  smelter  or  rail- 
roads, and  seeks  the  aid  of  capital  to  build  a 
smelter,  without  at  first  shipping  at  least  one  hun- 
dred tons  of  his  ore  to  prove  its  value,  he  generally 
has  no  minerals  of  commercial  value  to  extract.  And 
even  though  he  were  given  a  flat  smelter  char^ 


ROCKS  IN  THE  ROAD  TO  FORTUNE         77 

of  two  dollars  per  ton,  he  would  not  make  a  profit. 
The  present  public  smelting  rate  is  lower  than  any 
individual  smelter  of  small  capacity  can  equal. 

The  writer  has  known  men  to  advise  the  erec- 
tion of  mills  and  smelters,  simply  that  they  might 
receive  a  little  wages,  or  the  promoter  his  commis- 
sions. In  such  cases,  the  loss  is  a  foregone  conclu- 
sion. 

The  Rocky  Mountains  are  strewn  with  idle  mills, 
smelters,  cyanide  plants,  secret  processes,  etc.,  that 
eloquently  proclaim  man's  folly,  and  millions  lost 
through  inexperience,  and  the  belief  that  the  extrac- 
tion of  metals  from  ores  was  simply  the  ability  to 
pay  for,  and  construct,  certain  classes  of  machinery, 
which  the  investor  was  told  was  sure  to  bring  a 
high  percentage  of  saving.  Fully  thirty  per  cent, 
of  all  the  money  injudiciously  expended  in  mining 
can  be  laid  at  the  door  of  mechanical  error.  Ab 
stated,  even  before  a  promoter  knows  the  actual 
character  of  his  ore,  or  the  possible  tonnage  of  the 
mines,  the  appeal  goes  up:  "We  want  a  mill,  a 
smelter,"  or  some  secret  process  that  is  destined  to 
extract  more  gold  and  silver  than  nature  actually 
placed  in  the  rock.  Fully  ninety  per  cent,  of  those 
efforts  result  in  abject  failure,  and  more  investors 
decry  mining.  I  have  seen  this  craze  prevail  for 
many  years.  Great  reduction  plants  erected,  a  run 
of  a  few  months,  then — another  monument  to  folly; 
while  a  few  miles  further  down  the  same  gulch  can 
be  seen  a  commercial  miner  working  with  an  aras- 
ter,  or  a  crudely  constructed  stamp  mill  of  limited 


78    ROCKS  IN  THE  ROAD  TO  FORTUNE 

capacity,  making  a  fortune.  In  the  first  case,  the 
men  able  to  shower  hundreds  of  thousands  of  dol- 
lars into  judicious  ventures  lack  the  knowledge  that 
the  commercial  miner  possesses. 

It  may  be  a  radical  view  to  take  of  this  propo- 
sition, but  the  writer  holds  to  the  belief  that,  while 
the  machinery  houses  of  the  United  States  have  as- 
sisted materially  in  the  remarkable  advance  of  min- 
ing and  metal  extraction,  and  their  labor  saving 
devices  are  largely  responsible  for  the  present  econ- 
omies to  be  witnessed  in  mining  camps,  yet  it  is  a 
question,  if  it  is  right;  if  it  is  doing  justice  to  the 
mining  industi*y,  for  the  sake  of  selling  machinery, 
to  permit  the    inexperienced    to    waste    money  in 
mechanical  construction,  when  the  vendor  of  the 
machinery,  in  a  great  majority  of  cases,  is  reason- 
ably certain,  from  his  knowledge  gained  by  past 
experiences,  that  success  is  problematical.    Would 
it  not  be  better  to  inform  the  investor  of  the  intri- 
cate avenues  of  metal  extraction,  to  tell  him  the 
truth — that  certain  classes  of  machinery  are  suc- 
cessful on  certain  classes  of  ores?    But  the  special 
class  of  ore   must  exist  in  large,   proven   bodies. 
That,  aside  from  the  concentrator,  there  is  no  sys- 
tem of  treatment  that  can  successfully  treat  com- 
plex product?    That,  there  are  few  milling  ores  in 
commercial  bodies;  that  it  does  not  often  pay  to 
construct  a  small  individual  smelter;  that  even  con- 
centration is  not  successful  on  all  classes  of  ores, 
and  that,  before  any  effort  towards  actual  expen- 
sive construction  should  be  made,  those  investing, 


ROCKS  IN  THE  ROAD  TO  FORTUNE         79 

for  protection's  sake,  had  better  send  two  op  three 
hundred  tons  of  their  ore,  at  any  cost,  to  some  mill, 
identical  to  the  one  they  propose  erecting? 

It  is  admitted  that  such  a  policy  would  result  in 
less  machinery  being  sold;  but  would  it  not,  in  the 
end,  add  strength  to  the  industry?  For  while  the 
mechanical  engineer  receives  his  pay  for  those  mis- 
takes, the  mining  district,  in  which  they  are  located, 
suffers  more  than  do  those  who  invest  in  the  prop- 
erty; because  as  strangers  pass  through,  there  is 
nothing  so  depressing  upon  their  own  hopes  as  to 
see  a  number  of  closed  mills.  The  experienced 
operator  does  not  pay  much  attention  to  the  inoper- 
ative plants,  but  those  who  are  just  favoring  the 
mining  industry,  and  ready  to  add  their  wealth,  that 
new  wealth  may  be  made,  conceive  the  idea  that  the 
district  is  a  failure,  and  it  is  very  hard  to  remove 
that  opinion. 

Mining  machinery,  when  unsuccessful,  is  a  poor 
asset.  It  is  costly  to  install,  and  costly  to  remove. 
Very  seldom  can  a  corporation  obtain  thirty  per 
cent,  of  its  total  cost  of  construction  when  the 
wreck  is  offered  to  the  highest  bidder.  I  venture 
that  interjection  only  on  mills,  smelters  and  concen- 
trators. Such  machinery  as  pumps,  hoists,  drills, 
etc.,  are  standard,  and  we  know  that  they  will  work; 
but  with  ore  treatment  and  aerial  tramways  to  run 
by  gravity  there  is  a  doubt.  A  retrospect  of  mining 
history  will  show  that  fully  ninety-five  per  cent,  of 
those  mechanical  abortions  is  the  result  of  the 
machinations   of  some  Eastern  promoter  and   hie 


80    ROCKS  IN  THE  ROAD  TO  FORTUNE 

unsound  methods  of  flotation.  A  desire  to  force 
success,  where  nature  did  not  place  the  material  for 
success. 

If  the  writer  were  called  upon  to  make  a  con- 
tract with  a  firm  for  a  class  of  mill  machinery, 
which  the  firm  claimed  would  positively  work,  he 
would  deposit  in  the  bank  the  amount  of  the  con- 
tract, to  be  paid  over  to  the  machinery  house:  after 
the  mill  was  constructed,  and  running  successfully 
for  thirty  days,  to  prove  its  efficiency,  and  sustain 
the  claims  of  its  makers.  Knowing  that  every  sale 
depended  upon  such  a  proviso,  firms  would  only  con- 
struct machinery  which  they  were  positive  would 
answer  all  tests.  The  investor  would  pay,  only, 
when  the  machinery  proves  to  be  all  its  makers  as- 
sert it  to  be. 

Never  be  a  party  to  mill  or  smelter  construction, 
until  you  know  the  ore  is  well  opened  and  its  char- 
acter proven  by  a  few  hundred  tons  actually 
shipped.  -~*--^. 


CHAPTER  X. 

EQUIPPING  THE    MINE— THE    NEEDED    ME- 
CHANICAL APPLIANCES  FOR  THE 
SMALL  AND  LARGE  DIVIDEND 
PAYERS. 

The  question  of  equipping  is  one  to  be  solved  by 
the  mine  management.  The  average  stockholder 
seldom  enters  into  the  details  of  that  branch  of  the 
business,  or  knows  from  personal  experience  any- 
thing about  the  needs  of  the  property,  to  open,  oper- 
ate and  sustain  ore  bodies  for  steady  productions, 
the  ore  bodies  of  a  mine  being  to  it  what  the  re- 
serves of  a  bank  is  to  that  form  of  institution, — to 
be  drawn  upon  in  the  event  of  necessity.  As  the 
enormous  expenditures  made  in  a  great  commercial 
mine  may  prove  of  interest,  this  chapter  is  devoted 
to  the  subject,  first  treating  the  equipment  of  the 
small  property. 

A  mine  of  limited  capacity  may  be  commercial 
from  a  profit-sharing  standpoint,  the  same  as  a  large 
one,  the  difference  being  that  the  production  of  the 
small  mine  is  confined  to  smaller  bodies,  although 
commercial,  the  profits  are,  however,  limited.  Thus 
we  find  mines  operating  profitably  upon  six  inches 

81 


82    ROCKS  IN  THE  ROAD  TO  FORTUNE 

of  $25  ore,  in  which  case  the  equipment  is  not  neces- 
sarily extensive — general!}^  a  150-horsepower  plant, 
run  by  steam  or  electricity,  furnishing  the  motive 
power.  Here  is  installed  the  ordinary  ore  house  of 
no  great  cost — boarding  and  bunk  buildings,  and 
usually  a  blacksmith  outfit,  this  worth  probably 
$1,000;  stables,  office  buildings.  This  latter,  how- 
ever, often  covers  the  Assay  Department.  As  to 
the  machinery,  if  the  mine  is  worked  by  careful, 
conservative  men,  there  will  be  nothing  installed 
upon  it  but  a  single  drum  hoist  requiring  about 
eighty-horsepower.  The  ordinary  air  compressor  op- 
erates the  drills,  for  nearly  all  mining  is  now 
done  by  air  power  or  electricity.  The  compressor 
requires  about  seventy-horsepower,  and  will  drive 
four  large  drills  of  the  two  inch  size  together  with 
several  small  hand-stopping  drills.  The  capacity  of 
the  compressor  in  free  air  being  regulated  by  the  al- 
titude— that  is  to  say,  a  compressor  that  will  fur- 
nish 1,000  feet  of  free  air  a  minute  in  New  York 
City,  would  only  furnish  about  750  feet  at  an  eleva- 
tion of  12,000  feet.  Thus  compressors  are  built  in  ac- 
cordance with  the  elevation  at  which  they  are  to  be 
operated.  Such  a  commercial  plant  as  this  would 
not  C08t  to  exceed  |80,000,  including  buildings. 

Should  the  ore  shoot  be  exhausted,  there  is  al- 
ways some  salvage  in  such  a  plant.  These  small 
mines  are  worked  for  profit,  the  same  as  the  large 
ones.  There  are  fully  forty  per  cent,  of  the  produc- 
ing mines  of  this  country  that  may  be  classed  as 
small  mines;  that  is  to  say,  mines  that  will  pay 


ROCKS  IN  THE  ROAD  TO  FORTUNE        83 

from  ten  to  twenty  thousand  dollars  per  year  net 
profits.  They  are  economically  managed;  good  re- 
serves are  kept  in  sight  as  long  as  the  continuance 
of  the  ore  body  makes  it  possible.  They  are  worked 
upon  a  scheme  of  economy  on  account  of  the  ore 
bodies  being  small.  A  twenty-five  dollar  ore,  on 
the  railroad,  had  better  be  shipped  to  the  smelter, 
thus  eliminating  the  cost  of  mill  construction. 

As  the  mine  is  worked  its  product  may  run  from 
ten  tons  to  thirty  tons  per  day.  The  shaft  is  kept 
fairly  well  ahead  of  the  ordinary  work;  generally 
fifty  feet  deeper  than  the  drifts  so  that  as  the  ore  is 
extracted,  new  ore  is  opened  that  the  stoping  force 
may  always  have  bodies  to  attack.  If  the  ore  shoot 
dips  out  of  the  shaft,  a  level  is  driven  to  catch  the 
body  upon  its  dip.  If  a  fault  occurs,  drifts  winzes 
or  upraises  are  made,  thus  the  small  commercial 
mine  that  would  be  an  abject  failure  under  a  mine 
management  where  Eastern  and  Western  office  ex- 
penses are  heavy;  the  Superintendent  receiving  six 
or  seven  thousand  dollars  per  year,  etc.,  but  on  a 
basis  of  valuation  as  say  |100,000  or  |200,000,  this 
mine  might  continue  for  many  years  to  be  commer- 
cial and  return  a  profit,  long  after  the  invested  prin- 
cipal had  been  returned. 

On  the  other  hand  the  larger  mine  naturally  re- 
quires greater  equipment;  where  the  ore  bodies  are 
more  extended  and  lower  in  value;  greater  tonnage 
becomes  necessary  and  with  its  attending  enormous 
expenditures  for  mine  equipments.  There  are  many 
great  commercial  mines  in  the  United  States  and 


84    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Mexico,  the  surface  equipment  of  which  costs  more 
than  the  total  surface  equipment  of  fifty  of  the  so- 
called  sound  small  commercial  mines.  The  author 
knows  modern  mines  working  on  low  grade  ore 
where  the  equipment  in  all  branches  has  cost  much 
over  a  million  dollars,  but  they  are  not  referred  to. 
He  has  followed  a  plan  of  making  no  direct  allusions 
to  any  individual,  particular  mine  or  district,  and 
while  describing  a  great  mine,  he  will  not  refer  to 
one  of  recent  history.  He  evades  the  possibilities  of 
a  remark  by  those  antagonistic  to  his  ideas,  that 
there  was  any  effort  at  specially  advertising,  so  he 
will  take  as  an  example  one  of  the  great  Bonanza 
Mines  of  the  State  of  Nevada;  the  figures  being  the 
same  as  have  been  used  by  many  writers  in  the  de- 
scriptions of  the  enormous  expenditures  of  a  great 
mine.  To  those  who  desire  more  extended  state- 
ments as  to  the  works  of  commercial  properties,  and 
especially  the  famous  Comstock  vein,  reference 
can  be  made  to  the  works  of  William  Wright, 
known  as  "Dan  de  Quille";  Professor  Church,  F. 
Howard  Shinn,  Phillip  Deideshimer  and  others. 
The  author  intends  to  show  the  folly  of  men 
who  claim  to  make  mines  of  a  low-grade  char- 
acter with  150,000.  The  truth  on  the  subject  may 
be  of  general  benefit  as  well  as  interest.  When  a 
man  is  told  that  a  certain  amount  will  accomplish  a 
certain  task,  he  expects  it;  when  the  estimates  are 
made  by  thoughtless,  inexperienced  men,  and  more 
money  is  called  for  the  investor  loses  confidence  and 
often  will  go  no  further. 


ROCKS  IN  THE  ROAD  TO  FORTUNE         86 

The  figures  here  reproduced  were  verified  by  tJie 
author  during  his  last  visit  to  the  Comstock  in  Octo- 
ber, 1906,  and  are  from  the  same  source  that  all  the 
published  reports  of  the  great  vein  or  zone  has  been 
obtained — and  give  a  reasonable  idea  of  the  magni- 
tude of  the  operations  carried  on  by  the  California 
mine. 

In  1877  over  |315,000  was  spent  for  miscellane- 
ous supplies  and  over  |547,000  for  fuel  and  for  the 
timbers  and  iron  used  in  the  new  shaft  then 
being  sunk.  The  "regular  supplies"  stored  up  and 
used  above  ground  or  sent  down  into  the  mines  as 
required  included  the  following  large  items:  Tim- 
ber, over  10,000,000  feet,  costing  about  |224,000;  ice, 
nearly  2,000,000  pounds,  costing  about  |22,000;  pow- 
der to  the  value  of  |17,000;  candles  worth  |16,000; 
steel  and  iron,  |5,000. 

If  we  take  the  total  expense  account  of  the  same 
mine  for  that  year  (1877),  we  obtain,  perhaps,  a 
more  striking  impression  of  the  scale  of  operations. 
Supplies,  as  we  have  seen,  were  used  to  the  value 
of  about  1315,000;  salaries  and  wages  come  to  about 
1788,000;  cost  of  reduction  was  |2,220,000;  of  hoist- 
ing, $186,000;  and  of  assaying,  |53,000.  Office  ex- 
penses, teaming,  surveying,  taxes,  litigation,  and 
miscellaneous  items,  added  to  the  above,  bring  the 
total  to  considerably  more  than  $4,000,000.  In  such 
a  mine  the  value  of  the  outside  works  is  nearly  im- 
possible to  determine,  for  it  is  constantly  changing. 
If  there  is  no  mill  attached,  half  a  million  dollar* 


86    ROCKS  IN  THE  ROAD  TO  FORTUNE 

would  be  a  low  estimate;  complete  reduction  works 
add  as  much  more  to  the  total. 

Everywhere,  in  the  first  view  of  a  big  mine,  lum- 
ber, firewood,  and  machinery  are  the  most  striking 
features.  The  depths  of  the  Comstocks  in  the  last 
thirty  years  have  swallowed  up  fully  800,000,000 
feet  of  lumber — enough,  if  sawed  into  boards  and 
scantlings,  to  construct  forty  thousand  two-story 
houses  of  six  rooms  each.  Will  the  reader  now  con- 
sider the  soundness  of  the  claims  of  the  man  who 
says  he  will  succeed  with  a  few  dollars?  This 
lumber  would  provide  homes  for  two  hundred 
thousand  people.  If  the  consumption  of  lumber  had 
always  been  at  the  rate  of  such  bonanza  years  as 
1875  and  1876,  the  Comstock  lode  would  now  con- 
tain nearly  three  times  as  much  lumber  as  this  bur- 
ied in  its  shafts  and  drifts,  or  sufficient  for  the 
homes  of  six  hundred  thousand  people.  Hundreds 
of  square  miles  have  been  cut  to  supply  this  inex- 
orable demand,  and  every  foot  of  timber  used  has 
been  hauled  to  Gold  Hill  or  Virginia  City  and  piled 
in  the  lumber  yards  at  the  works.* 

The  fuel  used  during  the  past  thirty  years  has 
aggregated  something  like  three  million  cords.  In 
1880  the  Sierra  Nevada  furnaces  used  about  sixteen 
thousand  cords  of  wood,  and  four  other  mines  used 
more  than  ten  thousand  cords  apiece.    Such  a  mine 

♦Senator  Fair  told  the  author  in  1883,  that  there  was  always 
timber  reserves  in  Virginia  City  for  two  months  operations.  The 
writer's  first  lessons  in  square  set  timbering  was  given  to  him  by 
Senator  Fair,  while  visiting  the  White  Hall  Gold  Mines  of  Virginia. 


ROCKS  IN  THE  ROAD  TO  FORTUNE         87 

keeps  six  months'  snpply  of  fuel  on  hand,  and  even 
a  smaller  mine  always  has  five  hundred  cords  piled 
in  the  yard. 

The  machinery  on  a  commercial  mine  is  of  so 
many  different  types  and  is  constantly  undergoing 
so  many  changes,  repairs,  and  improvements,  that 
the  foundries  and  machine  shops  at  the  mouth  of 
a  mine  often  seem  as  if  they  had  been  transplanted 
bodily  to  the  Comstock  from  some  large  seaport. 
The  total  horsepower  represented  by  all  the  en- 
gines used  on  the  Comstock  affords  a  still  better 
measure  of  the  work  done.  The  mines  in  1880  had 
engines  of  a  combined  capacity  of  21,000  horse- 
power. Single  mines  have  had  2,000,  and  even  3,000 
horsepower  in  use  at  times.  The  power  of  the 
hoisting  engine  is  necessarily  great.  At  the  Yellow 
Jacket  the  two  hoisting  engines  are  each  of  1,000 
horsepower.  The  main  engine  at  the  California  and 
Consolidated  Virginia  shaft,  everywhere  known  as 
the  "C.  &  C,"  is  of  2,000  horsepower;  it  lifts  a  cage 
with  two  cars  of  rock  and  handles  a  passenger  cage 
at  the  same  time.  What  would  be  called  an  average 
cable  at  one  of  these  great  mines  is  made  of  steel 
and  wire,  woven  flat,  seven  inches  wide  and  five- 
eighths  of  an  inch  thick;  the  pulleys  are  forty  or 
fifty  feet  above  the  shaft  mouth  on  a  cross-beam, 
supported  by  a  very  large  and  massive  frame,  which 
is  built  around  the  mouth  of  the  shaft  and  is  called 
the  "gallows-frame."  A  steel  cable  such  as  is  used 
on  the  Comstock  weighs  from  twenty-five  thousand 
to  forty  thousand  pounds.    In  the  case  of  those  that 


88    ROCKS  IN  THE  ROAD  TO  FORTUNE 

taper  regularly  toward  the  lower  end,  where  less 
strength  is  needed,  the  reduced  size  is  not  obtained 
by  leaving  out  some  wires,  but  by  gradually  taper- 
ing each  wire  in  its  manufacture. 

Will  the  reader  now  stop  and  do  a  little  hard 
thinking?  Will  he  recall  the  sensationally  pro- 
moted prospects — recall  the  promises  of  enormous 
profits  if  a  few  dollars  are  invested?  The  many  dis- 
play advertisements  that  speak  only  of  what  you 
are  going  to  receive, — never  the  statement  of  the 
possible  cost  of  working  a  great  mine.  This  prop- 
erty here  referred  to  is  only  one  of  the  big  mines 
of  America.  There  are  mines  at  Butte,  Montana,  at 
Lake  Superior,  at  the  Rand,  at  Leadville,  at  Idaho 
Springs,  at  Bisbee,  Cananea  and  other  points,  all 
paying,  all  equipped  more  or  less  the  same  as  the 
California.  In  small  mines  a  little  money  is  all  right, 
but  in  a  big  mine  you  need  a  National  Bank. 

We  will  divert  a  little  from  the  subject  of  un- 
sound ventures  and,  for  the  sake  of  information, 
describe  an  underground  visit  to  a  great  mine.  The 
system  followed  in  one  mine  is  generally  the  same 
in  all  others.  The  deepest  mine  to-day  operated  by 
the  writer  is  2,100  feet  below  the  surface.  The  vis- 
itor can  either  go  down  the  shaft  or  can  ride  in  an 
electric  trolley  8,000  feet  through  a  cross-cut  tun- 
nel, then  go  up,  but  the  sensation  is  the  same.  The 
visitor  in  both  cases  retires  to  a  dressing  room, 
takes  off  his  or  her  ordinary  clothing,  puts  on  one 
of  the  suits  kept  there  for  the  purpose — flannel 
pantaloons,  woolen  shirt,  heavy  shoes,  and  felt  hat 


ROCKS  IN  THE  ROAD  TO  FORTUNE         89 

— is  placed  in  charge  of  a  foreman,  and  they  enter 
the  cage.  If  it  is  a  drop  by  shaft  from  the  surface, 
the  foreman  waves  his  hand;  in  an  instant  you  are 
dropping  noiselessly  into  the  darkness,  lit  only  by 
the  flickering  rays  of  a  lantern,  which  shows  tim- 
bers seemingly  leaping  upward. 

Pretty  soon  a  station  appears,  but  we  pass  with- 
out. There  seems  to  be  a  large  irregular  room  open- 
ing back  from  the  side  of  the  shaft.  Men  are  busy 
there,  moving  about  in  the  well-lighted  space,  and 
there  is  machinery  at  work.  If  we  went  slower,  we 
should  see  a  drift  extending  from  the  station  and 
dividing  into  many  passages,  and  miners  and  fore- 
men would  be  noticed  passing  to  and  fro  engaged  in 
various  occupations.  Every  hundred  feet  a  station 
flashes  past,  and  the  immensity  of  the  work  begins 
to  grow  upon  the  traveller. 

Sometimes,  the  man  in  charge  of  a  station  hails 
us  as  we  pass,  and  the  foreman  makes  a  reply  that 
is  Choctaw  to  the  uninitiated,  for  we  are  dropping 
rapidly  away  from  the  sound.  As  we  reach  a  depth 
of  a  thousand  feet  or  so  the  cable  sometimes  begins 
to  "spring"  with  a  peculiarly  disagreeable  bobbing 
motion,  which  gives  a  novice  a  new  sensation,  as  if 
hung  in  an  abyss  by  a  rubber  strap.  In  the  midst 
of  this  we  come  to  a  full  stop  at  the  flf teen-hundred- 
foot  station  and  step  off  on  the  floor. 

A  station  is  the  office  for  the  work  done  on  that 
mining  level,  as  well  as  the  point  where  men  stop 
and  where  freight  is  shipped  or  received.  It  is  walled, 
roofed,  and  floored  with  huge  timbers  and  plankB, 


90    ROCKS  IN  THE  ROAD  TO  FORTUNE 

and  is  a  large,  well-lighted  place  crowded  with  min- 
ing supplies,  barrels  of  ice  water,  candles,  fuse, 
powder,  tools,  etc.  If  it  were  not  for  a  car  track 
which  crosses  the  middle  of  the  floor,  coming  from 
the  level  beyond  and  connecting  by  switches  with 
all  the  hoisting  compartments  of  the  shaft,  the 
place  would  sometimes  seem  a  combination  of  office 
and  country  store.  The  car  track  that  extends 
through  the  main  drift  of  the  mine  connects  by 
turn  tables  with  the  side  drifts  and  cross-cuts.  Laden 
cars  arrive  regularly  from  the  "stopes"  or  places 
where  ore  is  being  taken  out,  and  are  sent  to  the 
surface  by  the  station  tender.  Empty  cars  as  they 
arrive  are  returned  to  some  place  where  they  are 
needed  by  the  car  men,  and  so  the  work  goes  on 
steadily,  excepting  when  shifts  are  changed. 

The  drifts,  or  "galleries''  as  some  call  them,  are 
four  to  six  feet  wide  and  seven  to  eight  feet  high. 
The  miners  prefer  to  cut  them  outside  of  the  vein 
as  much  as  possible,  as  there  is  less  danger  of  caves. 
The  floor  of  a  drift  is  horizontal,  or  slightly  raised, 
to  facilitate  the  delivery  of  ore.  The  main  north 
and  south  drift  is  the  Broadway  of  the  level,  and 
sometimes  even  contain  a  double  car  track.  The 
cross-cuts  start  from  the  main  drift  at  right  angles 
with  the  vein,  so  as  to  cut  into  the  ore  body  if  any 
is  found.  Like  the  levels,  they  are  about  a  hundred 
feet  apart.  They  are  extended  entirely  across  the 
lode  to  the  other  wall,  and  are  connected  with  each 
other  by  cross-drifts.  Every  new  cross-cut  attracts 
the  attention  of  all  who  are  interested  in  the  mines. 


Breaking  rock  with  air  power  drills  in  a  Commercial  Mire  on  the  deep  level. 


ROCKS  IN  THE  ROAD  TO  FORTUNE        91 

If  one  cross-cut  is  in  pay  ore,  there  is  much  greater 
excitement  when  the  next  one,  a  hundred  feet 
farther  on,  is  to  be  opened.  In  this  way,  with 
drifts,  cross-cuts,  and  cross-drifts,  the  skeleton  of 
the  underground  plan  begins  to  be  apparent.  Im- 
agine a  general  plan  something  like  this  on  each 
level,  and  we  only  have  to  describe  the  winzes 
to  complete  the  framework  of  the  passage-ways. 
A  winze  is  a  small  shaft  sunk  wherever  it  is 
needed,  from  one  level  to  another,  for  ventilation, 
to  explore  new  ground,  or  often,  when  sloping,  to 
serve  as  a  chute  for  ore  and  timbers.  An  "upraise'- 
is  the  beginning  of  a  winze  started  on  a  level  and 
carried  upward  toward  the  higher  level.  If  it  is 
finished  its  name  is  changed  to  winze.  The  only 
connection  between  one  level  and  another  besides 
the  main  shaft  is  by  means  of  these  winzes.  Vertical 
winzes  are  in  reality  shafts;  sloping  winzes  are  in- 
clines; drifts,  cross-cuts,  and  cross-drifts  are  really 
tunnels. 

The  main  shaft  which  connects  all  these  under- 
ground workings  is  not  always  vertical,  neither  does 
it  always  remain  the  same  for  its  entire  length;  it 
may  be  an  "incline,"  as  the  Crown  Point  shaft, 
which  is  vertical  in  the  eleven-hundred  foot  level 
and  then  follows  the  lode,  which  dips  thirty-five  de- 
grees at  that  point.  The  car  used  for  hoisting 
through  an  incline  is  a  "giraffe,"  absurdly  so 
called  "because  the  hind  wheels  are  very  large  and 
the  front  ones  low,  so  as  to  keep  the  car  level."  One 
would  suppose  that  the  name  kangaroo  would  be 


n         ROCKS  IN  THE  ROAD  TO  FORTUNE 

more  appropriate.  It  carries  eight  tons  of  ore  at  a 
trip.  Sometimes  another  or  "back-action''  car  is  fast- 
ened behind.  A  ride  on  a  giraffe  is  very  exciting. 
The  track  is  well  lighted  and  the  cars  climb  it  with 
the  speed  of  a  lightning  express.  The  giraffes,  like 
the  elevator  cages,  have  safety  grips.  At  the  bottom 
of  the  shaft  or  incline  is  the  "sump,"  a  pit  or  well 
flunk  there  to  collect  the  water  from  the  mine. 
Here  are  the  suction  ends  of  the  pumps.  Here  is 
the  bottom  of  the  mine. 


CHAPTER  XI. 

SENSATIONAL  ADVERTISING. 

"A  plain,  homely  fact  does  more  good  than  a  million 
beautifully  garbled  lies." 

Perhaps  my  conception  of  honest  intent  is 
wrong,  and  that  which  I  termed  unsound  is  bene- 
ficial,— to  use  the  language  of  the  dearest,  sweetest 
character  that  the  writer  ever  knew:  the  late  Col- 
onel Robert  G.  Ingersoll. 

"I  may  be  wrong,  mistaken;  but,  if  I  am,  it  is  an 
honest  mistake.  I  believe  it.  Give  me  proof  that  it 
is  wrong,  and  openly  my  fault  will  be  acknowl- 
edged." 

One  evening,  in  Ansonia,  Connecticut,  a  short 
time  before  the  world  lost  this  great  man  and  soul, 
and  lover  of  humanity,  we  discussed  the  past  and 
present  conception  of  the  meaning  of  Honesty. 
Condensed,  it  was :  to  be  fair,  open,  broad,  generous, 
charitable  in  thought,  as  well  as  with  a  ready  and 
helping  hand.  If  this  conception  changed,  with  the 
passing  of  the  fathers  of  the  republic, — if  honesty  is 
to  use  one's  superior  knowledge  and  intelligence  to 
defraud  the  less  gifted  and  the  lowly;  to  take,  with- 
out giving  substantial  equivalent;  to  ignore,  or  for- 
get— the  conditions  of  a  trust;  to  take  advantage  of 

93 


94    ROCKS  IN  THE  ROAD  TO  FORTUNE 

innocence  and  misplaced  confidence,  because  one 
has  found  a  loophole  in  the  law  which  makes  him 
immune  to  punishment;  to  deceive  by  skillfully, 
artfully  worded  promises,  which  apparently 
means  '\ves,"  but  in  reality  "no";  if  to  gain  the  hard- 
earned  wealth  of  others,  one  promises  that  which 
at  the  time  he  knows  there  is  not  a  reasonable 
chance  by  his  ability  to  fulfill,  without  perhaps  that 
chance  which,  in  all  things,  is  just  possible  in  life; 
if  to  excite  to  the  point  where  reason  is  forgotten, 
and  in  falling  enriches  him  who  caused  the  loss;  if 
promising  to  return,  with  no  intention  to  keep  the 
promise;  if  to  tear  from  each  dollar,  bestowed  in 
trusting  confidence  for  one  specific  purpose  a  large 
part  of  that  dollar  as  one's  compensation,  before 
there  is  any  result  from  the  venture  in  which  the  in- 
vestor was  urged  to  embark;  if  to  excuse  one's 
faults  by  previously  prepared  excuses: — If  Mod- 
ern Finance  calls  these  things  honest,  then  the 
writer  is  wrong  in  condemning  certain  forms  of 
mine-promotion  as  unsound.  The  reader  must  bear 
in  mind  that  this  is  the  opinion  of  one  man,  the 
writer  of  this  book. 

A  cleaner,  better  condition  in  mining  is  desired^ 
that  the  industry  may  be  progressive.  The  writer 
knows  that  some  things  are  done  which  are  serious 
mistakes.  His  own  faults  and  weaknesses  have  been 
acknowledged;  but  on  the  question  of  a  better 
understanding  between  the  Eastern  capitalist  and 
the  Western  miner,  the  reader  must  be  the  judge. 

Fassett  is  right: 


I 


i 


ROCKS  IN  THE  ROAD  TO  FORTUNE         95 

"The  growing  importance  of  the  mining  industry, 
its  immense  production,  the  rapid  accumulation  of 
fortunes,  and  the  well-known  prosperitj'  of  some 
mining  regions  have  created  so  widespread  an  inter- 
est in  gold  and  silver  mines  that  any  information 
relating  thereto  is  beginning  to  be  eagerly  sought 
after.  There  has  ever  been  a  fascination  and  ro- 
mance attending  the  search  of  the  precious  metals, 
and  time  intensifies  rather  than  diminishes  the  feel- 
ing. Under  the  magic  influence  of  gold  and  silver 
discoveries,  a  spirit  of  enterprise  has  been  engen- 
dered that  has  brought  about  the  accomplishment  of 
results  as  unexpected  as  they  are  grand  and  won- 
derful. The  wilderness  is  peopled,  states  are 
founded,  and  almost  an  empire  established,  where 
the  presence  of  civilized  man  was  unknown  but  a 
few  short  years  ago." 

To  keep  this  unrest  alive,  to  increase  our  product, 
the  industry  must  command  respect.  For  that,  we 
hope. 

Ever  since  the  wonderful  profit  possibilities  of 
the  industry  became  recognized  by  a  class  of  men 
ready  to  go  into  any  business  where  money  can  be 
made  without  manual  labor,  the  public  has  been 
importuned  in  every  conceivable  form  to  buy  min- 
ing stocks,  for  a  few  cents  a  share,  which  according 
to  the  vendors  are  "bound  to  bring  fortunes  to  the 
holders."  Ninety-five  per  cent,  of  these  promotions 
were  based  upon  simple  prospects,  that  had  not  yet 
proven  of  commercial  value. 

For  some  time  the  system  of  circularizing  was 


96    ROCKS  IN  THE  ROAD  TO  FORTUNE 

forced.  Then  the  idea  of  saving  postage  by  reach- 
ing hundreds  of  thousands  by  a  display  advertise- 
ment in  the  papers  was  conceived.  Those  lavish 
public  notices  of  the  fortunes  that  await  you  by  the 
investment  of  a  few  dollars,  have  in  a  large  measure 
run  their  course,  and  do  not  appeal  to  the  intelli- 
gent investor,  who  understands  that  newspaper 
promotions  are  costly,  and  not  always  to  be 
accepted  as  truthful  statements  of  facts;  but  they 
will  appeal  to  the  wage  earner  not  experienced  in 
the  ways  of  so  called  modern  finance.  It  is  esti- 
mated that  thirty  per  cent,  of  all  the  money  taken 
in  by  those  who  follow  this  form  of  advertising  is 
paid  out  to  advertising  agencies. 

Many  of  the  most  seductive  advertisements  are 
written  by  men  who  know  very  little  about  mining; 
some  of  them  were  never  underground.  They  have 
been  taught  to  write  in  the  manner  of  the  artist, 
who  paints  on  commission  the  beauties  of  a  land- 
scape. The  more  fascinating  the  picture,  the  more 
praise  and  price  for  the  artist.  These  word-artists 
boast  of  their  ability  to  promise  large  profits  with- 
out really  saying  anything  upon  which  a  grand 
jury  could  indict.  Of  late  years,  the  more  success- 
ful writers  of  mining  literature  deal  in  what  Rufus 
Choate  called  "glittering  generalities,"  and  con- 
stantly keep  in  the  minds  of  the  readers  the  fact 
that  some  man  has  acquired  great  wealth  in  mining 
investments,  and  that  the  shares  offered  at  a  few 
cents  have  an  equal  chance  of  success.  The  com- 
mercial miner,   with  his  knowledge  of  the  actual 


ROCKS  IN  THE  ROAD  TO  FORTUNE         97 

conditions,  could  not  write  such  matter,  as  his  sense 
of  honor,  proper  pride  and  self-respect  would  pre- 
vent him.  He  would  know  that  even  the  mining  in- 
dustry, with  its  enormous  possibilities,  could  not 
make  good  the  promises.  These  alluring  effusions, 
when  dissected,  mean  nothing,  and  when  some 
wronged  and  indignant  investor  arrests  or  sues 
those  responsible  for  the  efforts,  he  is  often  met 
with  the  defense  that  a  man  has  a  right  to  believe 
that  a  mine  might  be  worth  a  hundred  millions,  and 
yet  the  mine  itself,  from  a  commercial  standpoint, 
not  be  worth  a  dollar.  They  know  the  law  cannot 
control  the  mind  of  man,  and  he  who  expresses  his 
belief,  or  who  simply  says,  "that  he  is  informed,  or 
that  he  believes,"  such  a  mine  will  develop  into  a 
property  worth  millions,  is  simply  giving  an  expres- 
sion of  opinion;  yet,  in  reading  these  advertisements 
the  unskilled  overlook  those  little  legal  loopholes. 
There  are,  however,  some  able  judges  who  do  not 
agree  about  a  man's  belief  constituting  a  defense, 
if  the  expression  of  the  belief  has  caused  some  in- 
vestor a  loss  and  the  expressor  of  the  belief  a  gain. 
This  subject  is  further  discussed. 

Some  judges  are  of  the  opinion  that  even  the 
advertising  writers  are  parties  to  the  act;  that  they 
know  that  their  efforts  are  not  intended  for  the  pub- 
lic's good,  or  that  there  is  any  reasonable  evidence 
of  the  ability  of  the  promoter  to  keep  his  promise. 
The  glittering  displays  of  ancient  history,  covering 
the  success  of  some  of  the  most  noted  mines,  or  ob- 
scure cases  where  a  hundred  dollars  has  brought  in 


98    ROCKS  IN  THE  ROAD  TO  FORTUNE 

a  thousand,  are  so  skillfully  worded  that  the  reader, 
glancing  hurriedly  over  the  matter,  fails  to  see  that 
in  the  advertisement  there  is  no  positive  assertion, 
only  hope  and  promise;  one  line  of  fact,  reading: 
"We  are  shipping  ore,"  is  worth  a  page  of  such 
financial  chaff. 

There  are  but  two  things  that  should  be  told 
in  a  mining  advertisement;  first:  "This  is  a  pros- 
pect; some  time  after  money  is  spent  upon  it,  it  may 
pay."  The  other  is:  "This  mine  has  ore  to-day  in 
commercial  bodies;  it  is  well  developed  and  equip- 
ped; therefore,  it  is  reasonable  to  conclude  that  its 
present  showing,  which  is  of  commercial  nature, 
will  continue  for  years." 

That  is  all  there  is  to  mining.  It  is  one  or  the 
other:  prospect  or  mine.  It  may  be  called  a  mine, 
but  unless  it  is  upon  a  sound  commercial  basis,  it  is 
only  a  prospect,  with  its  attendant  hopes  and  risks. 
The  so-called  successful  financial  writer  tries  to 
cover  the  fact  that  a  prospect  is  not  a  mine. 

The  promoter  who  is  associated  with  some  adver- 
tising agency  has  advantages  not  possessed  by  the 
average  broker.  He  is  able  to  carry  credits,  and 
often,  before  his  bills  fall  due,  he  reaps  the  harvest 
of  his  labors.  Other  brokers  are  obliged  to  pay  at 
the  time  their  advertisement  is  inserted;  besides, 
they  are  obliged  to  pay  full  public  rates.  They  have, 
also,  chances  of  having  reading  notices  inserted 
that  look  like  legitimate  news  from  the  mines. 

When  they  are  interested  in  opening  some 
prospect,  so-called  special  news  letters  are  often 


ROCKS  IN  THE  ROAD  TO  FORTUNE         99 

published  wherein  their  property  is  made  to  appear 
in  fascinating  relief;  stories  of  strikes  of  rich  ore  are 
thus  chronicled,  and  to  all  appearance  it  has  the 
marking  of  legitimate  mining  news,  sent  out  by 
the  Associated  Press.  Generally  this  material  is 
prepared  and  mailed  to  some  paper  under  contract 
to  insert  financial  advertisements.  When  published, 
other  papers  reproduce  it  innocently,  thus  the  fame 
of  the  prospect  is  spread,  and  those  selling  the 
stock  make  up  sheets  of  articles  reproduced  from 
different  papers  and  mail  them  to  those  they  are 
trying  to  impress. 

Ridicule  has  often  won  victories  for  just  causes, 
I  am  going  to  apply  ridicule  to  the  system  of  send- 
ing the  self-prepared  articles  purporting  to  reflect 
the  worth  of  some  rich  property.  Mark  Twain  had 
experience  in  the  sixties;  the  value  of  these  so-called 
telegrams  was  known  to  him. 

A  number  of  years  ago,  when  he  was  prospecting 
in  the  Nevada  and  California  deserts,  his  eyes 
chanced  to  read  a  dispatch  sent  by  a  well-known 
mining  writer  from  San  Francisco  to  the  Saturday 
Evening  Post,  in  reference  to  gold  said  to  be  held  in 
solution  in  the  waters  of  the  Calistoga  Springs. 

Now,  Mark  just  applied  his  keen  sense  of  humor 
to  the  ludicrous  situation  produced  by  the  erstwhile 
"mining"  writer,  and  he  himself  wrote  thuswise: 

"I  have  just  seen  your  dispatch  from  San  Fran- 
cisco in  Saturday  Evening's  Post,"  wrote  Mark, 
"about  gold  in  solution  in  Calistoga  Springs,  and 
about  the  proprietor  having  extracted  1,600  ounces 


7J 


100  ROCKS  IN  THE  ROAD  TO  FORTUNE 

of  gold  of  the  utmost  fineness  from  two  barrels  of 
water  during  the  past  fortnight,  by  a  process  known 
only  to  himself.  This  will  surprise  many  of  your 
readers,  but  it  does  not  surprise  me,  for  I  once 
owned  these  springs  myself.  What  does  surprise 
me,  however,  is  the  falling  off  in  richness  of  the 
water.  In  my  time  the  yield  was  |1  a  dipperful.  I 
am  not  saying  this  to  injure  the  property  in  case  a 
sale  is  contemplated.  I  am  saying  it  in  the  interest 
of  history.  It  may  be  that  the  hotel  proprietor's 
process  is  an  inferior  one.  Yes,  that  may  be  the 
fault.  Mine  was  to  take  my  uncle  (I  had  an  extra 
one  at  that  time  on  account  of  his  parents  dying 
and  leaving  him  on  my  hands)  and  fill  him  up  and 
let  him  stand  fifteen  minutes  to  give  the  water  a 
chance  to  settle.  Well,  then,  I  inserted  him  in  an 
exhaust  receiver  which  had  the  effect  of  sucking 
gold  out  through  his  pores.  I  have  taken  more  than 
f  11,000  out  of  that  old  man  in  less  than  a  day  and  a 
half. 

"I  should  have  held  on  to  those  springs  but  for 
the  badness  of  the  roads  and  the  difficulty  of  getting 
the  gold  to  market.  I  consider  that  the  gold-yield- 
ing water  is  in  many  respects  remarkable,  and  yet 
no  more  remarkable  than  the  gold-bearing  air  of 
Catgut  canyon  up  there  toward  the  head  of  the 
auriferous  range.  This  air,  or  this  wind,  blows 
steadily  down  through  600  miles  of  the  richest 
quartz  croppings  during  an  hour  and  a  quarter 
every  day  except  Sundays;  is  heavily  charged  with 
exquisitely  fine,  impalpable  gold.     Nothing  precip- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       101 

itates  and  solidifies  this  gold  so  readily  as  contact 
with  human  flesh  heated  by  passion.  The  time  that 
William  Abrahams  was  disappointed  in  love  he  used 
to  sit  outdoors  when  the  wind  was  blowing,  and 
come  in  again  and  begin  to  sigh,  and  I  would  extract 
over  a  dollar  and  a  half  out  of  every  sigh.  He  sighed 
right  along,  and  the  time  that  John  Harbinson  and 
Aleck  Norton  quarreled  about  Harbinson's  dog,  they 
stood  there  swearing  at  each  other;  and  they  knew 
how,  and  what  they  didn't  know  about  swearing 
they  couldn't  learn  from  you  and  me,  not  by  a  good 
deal,  and  at  the  end  of  every  three  or  four  minutes 
they  had  to  stop  and  declare  a  dividend.  If  they 
didn't  their  jaws  would  clog  up  so  they  couldn't  get 
big,  nine-syllable  ones  out  at  all,  and  when  the  wind 
was  done  blowing  they  cleaned  up  just  a  little  over 
|1,600  apiece.  I  know  these  facts  to  be  absolutely 
true,  because  I  got  them  from  a  man  whose  mother 
I  knew  personally.  I  do  not  suppose  a  person  could 
buy  the  water  privilege  at  Calistoga  now  at  any 
price,  but  several  good  locations  along  the  course  of 
the  Catgut  canyon  gold-bearing  trade  winds  are  for 
sale.  They  are  going  to  be  stocked  for  the  New 
York  market.  They  will  sell,  too;  people  will 
swarm  for  them  as  thick  as  Hancock  veterans  in  the 
South." 

There  is  generally  but  little  fact  in  these  arti- 
cles. A  misrepresented  fact  is  punishable  and  for 
that  reason  these  articles  say  seldom  anything  posi- 
tive like:  "One  hundred  tons  of  ore  were  shipped  to 
the  smelter  last  week."    The  reader,  once  posted, 


102  ROCKS  IN  THE  ROAD  TO  FORTUNE 

can  mark  these  self-prepared  articles  at  a  glance; 
there  is  seldom  any  statement  of  fact. 

When  impressed  by  the  promises  made  through 
newspaper  advertisements,  remember,  that  that  is 
not  the  system  of  raising  money  followed  by  com- 
mercial operators,  who  have  mines.  The  system  is 
too  costly;  and  further,  remember  that  if  this  sys- 
tem is  the  sound  way,  that  the  practical  miners  have 
not  yet  realized  it,  for  a  review  of  all  the  proposi- 
tions promoted  by  sensational  advertisements  dur- 
ing the  past  ten  years,  proves  there  is  not  tliree 
to-day  upon  a  healthy  dividend  paying  basis. 

It  should  be  said  that  not  one  has  so  resulted, 
but  the  number  three  is  set  from  the  knowledge 
that  accident,  more  often  than  the  ability  of  the 
majority  of  promoters,  make  mines.  The  writer  has 
openly  asserted  that  if  one  hundred  promoters  of 
prospects  or  non-commercial  mines  could  be  elimi- 
nated from  the  field  of  mining,  that  there  would  end 
the  system  of  unsound  promotions,  for,  with  the 
passing  of  the  generals,  the  privates  or  local  agents 
and  travelling  canvassers  would  find  new  occupa- 
tions. 

Where  the  locality  is  widely  advertised,  the  dis- 
trict in  which  the  scene  is  set  invariably  suffers. 
The  money  raised  does  not  alv/ ays  find  its  way  into 
the  prospects;  only  a  limited  protion  of  it  goes  into 
actual  underground  development;  when  the  results 
do  not  show  ore  in  commercial  bodies,  the  cry 
against  mining  goes  up  again.  The  investors  who  do 
not  reason  seldom  recognize,  that  the  district  is  not 


ROCKS  IN  THE  ROAD  TO  FORTUNE       103 

responsible  for  the  foolish  efforts  of  men,  who  do 
not  understand  mining;  but  ever  afterwards  there 
is  a  feeling  of  prejudice  against  that  marked  region, 
deserving  men  with  properties,  that  do  show  ore, 
in  need  of  development,  to  make  the  same  commer- 
cial, fail  to  obtain  support  in  the  sections  where  the 
party  prejudiced  has  influenced.  What  the  mining 
district  most  requires,  for  a  long,  healthy  life  of  ore- 
producing  activity,  is,  that  development  be  con- 
tinued upon  such  lines  as  give  reasonable  chance  of 
ultimate  profit,  sensational  advertising  of  the  vast 
riches  of  the  district  only  works  permanent  injury, 
unless  the  money  obtained  is  honestly  and  well 
spent,  that  the  prospect  may  have  a  fair  chance  to 
prove  their  worth.  Every  man  has  a  right  to  ad- 
vertise his  wares,  but  in  the  case  of  mining,  which 
is  based  upon  the  risks  all  experienced  men 
acknowledge  do  exist,  there  should  be  statements  of 
facts,  in  bold,  positive  type.  Not  a  little  fact,  so 
woven  between  uncertainty,  history,  theory,  prom- 
ises and  expectations,  that  the  inexperienced  can 
not  separate  the  fact  from  romance.  The  public  is 
willing  to  take  a  fair  risk.  It  wants,  however,  to  be 
told  the  facts.  Commercial  mining  is  built  upon 
truth,  and  its  results  are  known.  Mining  builds  the 
world's  greatest  fortunes,  and  the  restless  Amer- 
ican is  eager  to  share  the  wealth.  He  believes  that 
he  is  investing  in  legitimate  mining;  otherwise  he 
would  not  invest.  He  would  speculate  in  those  mine 
shares  acknowledged  as  Stock  Exchange  offsprings 
when  the  rise  and  fall  mean  but  little  intrinsically 


104  ROCKS  IN  THE  ROAD  TO  FORTUNE 

to  the  mine  itself.  Then  why  is  it  necessary  to  gar- 
ble, to  distort  the  truth  about  a  prospect? 

When  shares  are  sold  upon  the  promises  stated, 
and  the  mine  does  not  pass  upon  a  dividend  paying 
basis,  the  promoter,  as  an  excuse  for  himself,  will 
say  that  he  has  honestly  tried  to  make  a  mine.  "I 
did  my  part;  I  raised  the  money."  But  if  success  or 
failure  follows  his  effort,  it  will  generally  be  found 
that  the  promoter  seldom  loses.  He,  at  least,  gets 
his  commissions.  He  is  in  the  business  for  what  he 
can  make  out  of  it.  Few  of  them  ever  consider  the 
commercial  side;  that  which  appeals  to  them  is  the 
proposition  that  gives  the  widest  latitude  for  exag- 
gerated statements,  such  as  the  old  Bonanza  Mine 
to  be  reclaimed;  or  the  possible  extension  of  some 
producing  property.  Legal  talent  is  employed  to 
keep  his  public  assertions  within  the  limit  of  the 
law,  and  the  announcements  are  written  with  a 
view  of  exciting  the  inexperienced.  There  are  few 
cases  of  record,  where  the  investor  ever  collects 
from  one  of  these  men.  Their  failures  and  misrep- 
resentations are  usually  credited  to  the  unfortunate 
industry  to  which  they  have  annexed  themselves. 
Their  apologies  or  regrets  that  are  the  closing  chap- 
ter in  those  unsound  ventures,  are  never  accompan- 
ied by  a  manly  statement  of  the  fact,  nor  of  a  return 
of  that  which  they  received,  that  the  wrong  may,  so 
far  as  it  lies  in  their  power,  be  atoned  for. 

The  commercial  miner  of  all  districts  disap- 
proves of  these  publicly  floated  propositions.  They 
know  that  success  seldom  follows.    Let  the  investor 


ROCKS  IN   THE   ROAD   TO   FORTUNE      105 

look  back  ten  years  and  see  that  if,  within  that  per- 
iod, from  thousands  of  promotions,  there  have  been 
even  ten  great  dividend  paying  mines,  made  by 
funds  obtained  through  this  form  of  sensational 
publicity.  Then  study  the  source  of  the  vast  pro- 
duct that  yearly  flows  from  our  mines;  the  many 
millions  of  dollars  in  dividends  honestly  won.  You 
will  find  that  nearly  all  of  it  comes  from  properties 
that  seldom  advertise  a  line,  but,  instead,  are  mak- 
ing a  daily  product  through  its  own  operations,  or 
the  results  of  mine  leasing.  Their  efforts  are  so 
homely,  so  careful  that  they  have  no  place  in  the 
modern  world  of  unsound  show  and  tinsel. 

Publicity  promotions  are  not  based  upon  the 
principles  that  make  success.  They  are  worked 
upon  the  theory  that  one  mine  is  as  good  as  another, 
and  that  they  are  justified  in  capitalizing  at  mill- 
ions, and  keeping  a  large  part  of  the  money  the  pub- 
lic invests  as  their  share  for  inducing  men  and 
women  to  invest.  Very  little  of  the  money  paid  for 
the  shares  so  sold  ever  goes  into  underground  work. 
There  are  other  avenues  of  expense  that  must  be 
paid  first. 

I  know  of  persons  who  have  held  that  the  papers 
publishing  those  sensational  and  misleading  an- 
nouncements were  in  part  responsible;  but  the 
writer  does  not  fully  agree  upon  this  point.  The 
great  metropolitan  papers  that  sell  space  over  their 
counters  cannot  know  of  the  truthfulness  of  all 
financial  advertisements.  It  is  the  business  of  the 
papers  to  sell  space,  not  to  set  a  corps  of  engineers 


106   ROCKS  IN  THE  ROAD  TO  FORTUNE 

to  investigate  the  claims  of  the  promoters.  Yet,  it 
is  a  fact,  that  when  it  has  been  brought  to  the  atten- 
tion of  many  papers  that  certain  advertisements 
were  misleading,  they  have  been  "thrown  out,"  and 
only  recently  a  Western  promoter  found  it  hard  to 
gain  access  to  the  principal  Chicago  dailies. 

It  may  be  said  of  mining  papers  that  are  in  close 
touch  with  the  industry,  and  know,  from  the  few — 
if  any — successes  which  come  from  sensational  ad- 
vertising, that  the  system  does  not  give  substantial 
returns,  are  better  able  to  discriminate  between  the 
good  and  the  bad.  Provided  that  even  a  mining 
organ  could  take  the  trouble  to  attempt  to  draw  the 
distinctive  line.  The  remedy  lies  with  the  reader; 
let  him  reason.  He  can  understand  that  sensation- 
alism is  for  the  profit  of  some  one,  other  than  the 
buyer.  Let  him  try  to  sell,  and  he  is  met  with  the 
statement  that  the  broker  does  not  buy,  he  is  sell- 
ing. It  does  not  take  a  very  brilliant  mind  to  un- 
derstand this  position.  If  we  can  divert  the  capital 
actually  intended  for  mine  development — from  the 
coffers  of  the  promoter,  placed  there  upon  claim  of 
commissions  and  expenses, — into  actual  mine  or 
prospect  work,  the  returns  would  be  handsome,  and 
soon  the  industry  would  pass  to  its  proper  position 
in  the  esteem  of  the  people,  and  while  there  would 
be  disappointments  the  same  as  follow  any  industry, 
there  would  be  less  by  fifty  per  cent,  than  the 
records  show  under  prevailing  conditions  of  modern 
promotion. 


CHAPTER   XII. 

HAS  EXAGGERATION  A  PLACE  IN  MINING? 

Can  Misrepresentation  be  an  Excuse  on  the  Plea 
of  Speculation? 

The  writer  was  present  when  a  mining  prospec- 
tus was  being  prepared  by  one  of  the  most  success- 
ful of  promoters  of  sensationally  presented  proposi- 
tions. The  heading  was,  "Chunks  of  Gold."  Then 
followed  the  usual  revamping  of  the  stories  of  mar- 
velous wealth,  won  by  the  investment  of  a  few  dol- 
lars, the  promise  of  heavy  dividends,  and  positive 
guarantee  that,  upon  the  personal  "honor"  of  the 
fiscal  agent,  there  would  be  no  loss.  This  man 
was  suave  and  convincing  in  manner  and  speech. 
In  his  office  it  was  a  standing  jest  that  "if  ever  a 
man  visited  his  private  room  he  was,  in  nearly  every 
instance,  sure  to  get  his  money." 

Upon  inquiry,  it  was  found  that  the  property  to 
be  promoted  was  undeveloped,  but  that  the  crop, 
ping,  or  "blossom  rock,"  had  shown  small  specks  of 
free  gold,  visible  with  a  glass;  but  there  had  never 
been  a  ton  of  ore  shipped,  nor  even  a  commercial 
test  made.  A  small  piece  of  rock,  showing  free  gold 
— a  common  sight  in  any  gold  district — had  been 

107 


108  ROCKS  IN   THE  ROAD   TO  FORTUNE 

clipped  down  until  an  assay  would,  in  truth,  show  a 
value  for  that  little,  carefully-trimmed  specimen  of 
110,000  a  ton. 

I  knew  this  man  intimately;  knew  that  he  had 
never  worked  a  day  in  a  mine,  and  could  not  tell  the 
difference  between  free  milling  and  base  ore.  The 
subject  of  how  to  write  a  mining  prospectus  was 
discussed.  I  claimed  that  the  matter  as  prepared 
was  misleading  and  might  work  an  injury  to  some- 
one who  would  risk  more  than  he  could  afford  to 
lose. 

At  this  interview  it  was  recognized  that  there 
are  some  men  who  prepare  their  way  to  escape  the 
results  of  failure  at  the  time  they  are  preparing 
their  arguments  to  convince  the  buyer  that  failure 
is  impossible  and  the  guarantee  bona  fide. 

"How  will  you  redeem  the  promise  you  make?" 

"We  make  no  promises.  Can't  you  see  that  we 
are  appealing  to  their  speculative  spirit?  They 
want  the  bright  side  of  it.  The  public  wants  to  gam- 
ble, and  one  must  stretch  the  story  to  interest  its 
cupidity.  If  the  thing  fails  I  will  be  sorry.  I  can't 
see  into  the  ground,  can  I?  This  thing  has  just  as 
good  a  chance  of  being  a  mine  as  any  undeveloped 
property,  but  we  don't  guarantee  one  thing." 

"But  is  it  not  better  to  tell  the  plain  truth? 
Then,  if  they  lose,  you  will  not  feel  as  if  you  were 
solely  responsible  for  the  results.    The  man  of  lim- 
ited means — would  then  reason  upon  his  chances?" 

"Not  in  a  hundred  years!  You  can  take  a  good 
mine  and  tell  the  cold,  plain  facts,  and  you  will  not 


1^ 


ROCKS  IN  THE  ROAD  TO  FORTUNE       109 

arouse  their  speculative  desires.  They  want  to  be 
excited." 

"But  there  is  very  little,  if  any,  truth  in  this 
prospectus.  You  have,  literally  speaking,  no 
'chunks  of  gold.'  " 

"We  don't  say  that  we  have!  If  people  want  to 
believe  all  they  see  in  print,  it  is  their  own  fault, 
not  mine." 

"Well,  there  are  some  men  and  women  who  read 
and  believe  every  word  you  write;  they  are  unread 
in  the  world's  affairs.    Why  not  write  the  facts?" 

"Why,  man  alive!  I  would  not  sell  a  share  in  a 
thousand  years  if  I  were  to  do  as  you  suggest!  I 
have  to  dress  up  this  mining  game  or  the  people 
won't  buy  and  I  obtain  no  commissions.  I  have 
tried  the  'plain-fact'  literature  and  was  sued  for  of- 
fice rent." 

"But  is  it  right?" 

"I  am  not  trying  to  teach  the  world  the  way  to 
live.  I  am  selling  mining  stock.  I  am  following  the 
popular  way,  and  I'll  bet  you  one  hundred  to  one 
that,  as  far  as  sales  results  are  concerned,  I  win  out. 
Now,  take,  for  instance,  this  prospectus  headed 
'Chunks  of  Gold.'  That's  the  catchline.  We  don't 
say  we  have  chunks  of  gold,  but  if  we  started  the 
book  with  'A  Mining  Enterprise'  or  'A  Good  Pros- 
pect,' there  is  not  one  in  ten  that  would  take  the 
trouble  to  read  a  line  of  it.  'Chunks  of  Gold'  catches 
the  speculative  spirit  and  the  rest  is  done  by  our 
follow^-up  literature." 

This  man  was  at  heart  a  generous,  charitable 


no  ROCKS  IN  THE  ROAD  TO  FORTUNE 

fellow— so  far  as  giving  in  the  name  of  charity  was 
concerned— but  he,  through  his  system  of  extrava- 
gant flotation,  brought  sorrow  to  many  homes. 
Years  have  passed  since  that  interview,  but  this 
man  followed  each  new  camp,  promoted  mines,  and 
hundreds  of  thousands  of  dollars  were  lost,  yet  a 
few  days  ago  I  met  him  in  Philadelphia  a  broken 
man. 

I  have  heard  it  said  by  men  of  intelligence,  but 
who  did  not  understand  commercial  mining,  nor  see 
the  results  of  injudicious  investments  by  men  and 
women  who  could  not  afford  to  lose,  that  those  ex- 
travagant promises  are  absolutely  necessary,  in 
order  that  the  success  of  mining  may  be  assured; 
that,  unless  people  speculate  in  prospects,  there  will 
be  no  commercial  mines;  and  that,  while  there  is  a 
great  deal  of  loss  through  unsound  promotions,  it  is 
necessary  to  make  them  attractive;  otherwise  the 
public  would  not  buy. 

A  leading  mining  editor  called  my  attention  to 
the  fact  that  in  the  commencement  of  Cripple 
Creek,  Colorado's  great  gold  district,  there  were  as 
many  wild-cat  and  fake  mining  companies  promoted 
as  there  are  now.  I  say  that  experience  is  the  best 
teacher,  and  that  the  history  of  the  wild-cats  and 
fakes  of  Cripple  Creek  should  be  used  as  an  object 
lesson  for  to-day  and  to-morrow.  The  commercial 
miner  profits  by  the  experience  of  the  past.  Why 
should  not  the  investor  do  likewise?  If  there  were 
such  exaggeration  and  misrepresentations  in  Crip- 
ple Creek,  why  should  they  follow  us  to  every  dis- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       111 

trict?     We  know  the  indications  of  the  unsound. 
Why  not  benefit? 

This  editor  and  every  commercial  miner  at  once 
recognizes  the  promotions  based  upon  unsound 
principles;  as  each  new  district  springs  up,  the  sen- 
sationally promoted  venture  follows.  Their  repre- 
sentations are  based  upon  some  one,  or,  perhaps, 
three  rich  discoveries.  Following  these  are  hun- 
dreds and  thousands  whose  very  make-up  and  prom- 
ises cause  suspicion.  The  commercial  miner  does 
not  give  them  a  second  thought;  but  those  in  remote 
districts  of  the  East  read  of  the  truly  big  properties; 
and  also  read  the  promises,  claims,  and  exaggerated 
literature,  of  the  unsound,  invests,  with  the  usual 
results. 

Was  there  ever  a  new  district  that  did  not  suffer 
in  reputation  because  of  these  unsound  ventures? 
The  experiences  of  the  past  should  unquestionably 
be  used  to  better  the  operations  of  the  future.  It  is 
well  understood  that  mines  are  made,  and  not  found. 
But  there  are  cardinal  principles  about  mine  or 
prospect,  from  which  the  experienced  miner  can 
draw  conclusions  as  to  the  possibilities  of  profits. 
A  prospect  should  show  mineral  before  the  inex- 
perienced should  be  asked  to  invest. 

It  is  the  inexperienced  that  is  responsible  for  the 
extravagant  promises  which  never  are  fulfilled,  ex- 
cept in  rare  cases  of  accident  or  luck,  such  as  caused 
the  fame  of  a  noted  Western  camp,  which,  however, 
has  yet  to  prove  its  right  to  a  permanent  position  by 
the  side  of  Cripple  Creek,  Gilpin,  Clear  Creek  or 


112   ROCKS  IN  THE  ROAD  TO  FORTUNE 

Leadville,  Colorado.  If  it  is  necessary  to  deceive  or 
exaggerate,  in  order  to  cause  the  public  to  invest, 
then  the  sooner  mining  is  considered  unworthy  of 
the  energies  spent  upon  it,  the  better. 

I  have  found,  in  my  experience,  that  where  there 
is  self-interest  there  is  always  an  excuse  for  the  de- 
fense of  anything  that  is  built  upon  unsound  princi- 
ples. While  the  commercial  miner  condemns  those 
sensational  flotations,  high  capitalizations,  exces- 
sive commissions,  and  extravagant  promises  of  divi- 
dends, there  are  men  who  will  reason  that  it  is  the 
cupidity  of  the  public  which  makes  those  misrep- 
resentations necessary.  Then  why  is  it  that  the 
commercial  miner  does  not  make  them?  Why  it  is 
that  ninety-five  per  cent,  of  all  these  flotations 
emanate  from  the  East,  or  by  Eastern  men  who 
have  entered  the  mining  field  as  brokers,  not 
miners?  On  this  point  I  leave  the  investor  himself 
to  judge.  There  are  two  ways  of  mining,  the  right 
and  the  wrong  way.  I  believe  the  right  way  is  to 
first  demonstrate  the  value  of  a  property  before 
seeking  by  widespread,  alluring  advertisements  the 
capital  of  the  poor,  because  it  is  usually  those  in 
medium  circumstances  who  are  affected  by  these 
failures.  If  a  miner  knows,  by  actual  development, 
that  he  has  more  than  ordinary  chances  of  success, 
then  is  the  time  to  ask  capital  to  invest  upon  a  rea- 
sonable basis,  and  place  the  matter  plainly  before 
them  on  the  ground  of  fact,  and  not  romance.  If  it 
is  a  prospect,  with  its  attendant  risks  and  possible 
gains,  say  so,  but  don't  convey  the  impression  that 


ROCKS  IN  THE  ROAD  TO  FORTUNE        113 

the  element  of  risk  no  longer  exists;  don't  pay,  or 
promise  to  pay,  enormous  profits  before  the  prospect 
has  proven  its  right  to  be  called  a  mine. 

I  do  not  believe  that  the  mining  industry  is 
based  upon  any  such  theory.  Wherein  is  it  neces- 
sary, to  exaggerate  to  gain  the  ear  of  capital?  It 
is  such  acts  that  have  practically  closed  the  ear 
of  capital  to  legitimate  operators. 

I  know  that  this  is  a  commercial  business,  the 
same  as  any  other  line  of  commerce  or  trade,  and 
while  there  are  elements  of  risk  in  the  development 
of  a  prospect,  there  is  no  more  risk  in  opening  a 
mine,  after  its  prospect  stage  has  passed,  than  there 
is  in  conducting  a  mercantile  business;  but  the  in- 
vestor must  deal  upon  miners'  principles.  The  truth 
about  the  risk  should  be  told,  the  same  as  the  mer- 
chants tell  of  the  risks  of  competition. 

Nearly  all  wrongs  have  their  champions.  Men 
use  their  intelligence  to  excuse  the  unsound  acts  of 
those  from  whom  they  receive  compensation,  direct- 
ly or  indirectly.  Thus  we  find  men  who  excuse  those 
extravagant  promotions,  by  claiming  that  those 
who  buy  mining  stocks  want  to  gamble;  that  they 
know  that  they  are  taking  great  chances,  but  are 
eager  to  take  them;  that  they  do  not  expect  to  win 
always,  but  that  they  go  into  the  venture  as  they 
would  into  the  betting  ring  at  a  race  track,  or  rou- 
lette, or  other  games  of  chance.  I  never  knew  that 
the  grand  mining  industry  had  degenerated  to  the 
point  where  the  labors  of  the  extraction  of  precious 
and  base  metals,  upon  such  scientific  lines  as  are 
followed  to-day,  was  in  the  same  category  with  gam- 


114   ROCKS  IN  THE  ROAD  TO  FORTUNE 

bling  and  horse  racing.  It  is  admitted  that  there 
are  stock  gamblers  that  are  intelligent  enough  to 
know  that  in  those  Eastern,  sensational,  promoted 
matters  the  profits  to  be  made  come  through  the 
ability  of  the  promoters  to  raise  the  price  of  the 
stock,  and  thus  enable  the  so-called  gambler  to  sell 
at  a  profit  to  some  other  man  not  as  well  versed  in 
modern  finance  as  himself,  thus  succeeding  at  the 
expense  of  some  other  man.  But  the  percentage  of 
men  who  gamble  in  these  stocks  is  very  small,  as 
compared  with  the  general  line  of  investors  who 
make  purchases  upon  promises  that  they  believe  to 
be  true. 

It  is  a  positive  fact  that  eight-tenths  of  all  the 
money  taken  in  by  the  publicity  promotions  come 
from  the  pockets  of  those  who,  weary  of  toil,  seek 
to  better  their  condition.  They  are  not  conversant 
with  the  ways  of  modern  finance.  They  are  honest 
themselves,  in  the  old-fashioned  way.  They  believe 
that  others  are  honest.  They  cannot  read  between 
the  lines,  where  a  little  foothill  of  fact  covers  a 
mountain  of  romance.  They  do  not  know  that  there 
are  men  in  the  world  who  use  their  talents  for  the 
purpose  of  making  a  little  fact  cover  a  vast  amount 
of  insincerity  and  promises.  Their  little  savings  are 
more  to  them  than  the  thousands  risked  by  the  gam- 
bler. But  no  discrimination  is  made.  The  tears  of 
the  widow  who  risks  her  little  all  in  the  hope  that 
she  may  better  the  condition  of  her  children;  the 
sorrows  of  the  man  whose  hair  has  been  tinted  by 
the  winding  sheet  of  time,  who  risks  his  pittance 


ROCKS  IN  THE  ROAD  TO  FORTUNE       115 

in  the  hope  of  ameliorating  the  condition  of  his  fam- 
ily, are  as  nothing  in  the  scales.  When  the  loss 
comes,  the  excuse  is  given  that  they  were  speculat- 
ing and  knew  they  w^ere  gamljling.  Those  people  be- 
lieve that  they  are  going  into  a  legitimate  business, 
where  their  profits  will  be  much  larger  than  in  any 
other  line  of  industry.  They  virtually  are  so  in- 
formed. There  are  no  plain  phrases  in  those  adver- 
tisements and  prospectuses  to  tell  them  in  cold  type 
that  they  are  gambling.  It  is  called  "investment 
for  a  rainy  day,"  and  the  like.  The  talents  of  men 
are  used  to  so  clothe  the  fact  that  prospects  are  a 
venture  and  risk,  that  even  the  most  skillful  and 
experienced  reader  of  financial  literature  cannot 
draw  the  distinctive  line. 

A  friend,  with  intent  to  serve  me,  but  a  slave  to 
pride  and  "what  society  says,"  was  much  exercised, 
that  I  should  write  this  book.  He  reasoned  that  it 
would  kill  my  business,  as  he  termed  it,  "They  will 
drive  you  out  of  Wall  street."  I  have  long  wanted 
to  do  a  little  for  the  mining  industry,  and  those  hon- 
est fellows  who  really  do  mine.  This  work  has  not 
been  written  upon  impulse,  but  with  desire  to  assist 
in  eliminating  exaggeration  and  untruth.  As  to  the 
unsound  promoter,  to  whom  my  remarks  are  di- 
rected, I  have  nothing  in  common. 

For  many  years  mining  has  been  the  chosen 
avenue  of  certain  men,  who  do  not  mine — they  are 
the  fathers  of  the  scandals  that  bring  no  credit  to 
the  industry  or  its  people;  they  take,  but  do  not  re- 
turn.   All  commercial  miners  recognize  the  type  to 


116   ROCKS  IN  THE  ROAD  TO  FORTUNE 

whom  the  author  refers.  It  is  fairly  well  known  that 
the  efforts  of  the  writer  are  in  the  interest  of  the 
real  miner.  Repeatedly  I  have  asserted  that  unless 
the  unsound  promotion  is  in  some  strenuous  manner 
prevented,  there  will  soon  be  no  mining  supported 
by  the  capital  and  confidence  of  the  public.  No  man, 
to  whom  that  here  written  does  not  pointedly  apply, 
will  feel  a  personal  affront.  "Rocks  in  the  Road"  has 
not  been  written  for  them.  For  the  element  that  do 
the  things  herein  set  forth  as  unsound,  the  author 
has  no  sympathy.  They  should  seek  other  avenues. 
I  have  always  maintained  that  it  was  cowardly  for 
the  owner  of  a  newspaper  to  attack  any  man  or  his 
property,  for  some  personal  reason,  that  the  owner 
of  the  paper  can  lay  his  opinion,  be  it  based  upon 
truth  or  untruth,  before  many  thousands,  while  the 
attacked  party  has  only  the  long,  tedious,  expensive 
right  to  the  appeal  of  the  courts,  or  a  non-successful 
effort  to  personally  explain  his  side,  to  each  man  he 
meets.  Therefore,  there  are  no  names  or  direct  inti- 
mations in  this  entire  book.  The  treatment  of  a 
general  subject  is  undertaken.  Some  of  the  ablest 
men  in  mining  have  been  informed  as  to  the 
author's  intent,  and  the  matter  to  be  published. 
Their  reply  has  been  unaminous,  "publish  it." 

As  far  as  personal  attack  is  concerned, — that  is 
possible,  naturally  men  who  have  long  fattened  at 
the  expense  of  others,  will  resent  any  attempt,  no 
matter  how  small,  to  take  from  them  an  easy  mode 
of  making  money.  The  writer  asks  that  in  any 
reply  to  this  work  that  facts  be  stated,   not  vague 


ROCKS  IN  THE  ROAD  TO  FORTUNE      117 

charges,  abuse  or  generalities,  but  hard,  cold  facts 
be  given.  The  only  question  here  involved  is  the 
truth  of  what  is  here  written,  the  age,  color,  morals, 
wealth,  poverty,  ability,  past  mistakes  or  perhaps 
personal  character  will  not  answer.  The  point  at 
issue  is  plain.     Is  the  author  telling  the  truth? 

As  for  the  opinions  of  any  man  who  lives  upon 
misrepresentation  and  unsound  mine  promotion,  I 
care  less  than  I  do  for  the  favorable  regard  of  the 
poor  human  derelict  that  drifts  along  the  dark  alley 
of  our  great  cities.  What  did  those  men  ever  do  for 
me,  or  for  mine,  or  the  industry?  The  writer  has 
never  been  a  favorite  with  their  class,  and  never 
will  be.  There  is  not  an  epithet  known  to  the  Eng- 
lish race  that  they  have  not  applied  to  me. 

The  commercial  miner  is,  in  a  certain  measure,  a 
gambler  with  nature.  If  he  were  such  in  the  gener- 
ally accepted  term  of  the  word,  I  am  sure  he  would 
object,  if  the  class  of  men  herein  referred  to  could 
be  sustained  in  their  claim  that  mining  is  wild 
gambling  and  that  they  themselves  follow  the  gam- 
bler's trade.  It  is  nauseating  to  hear  "sure  thing" 
operators  class  themselves  as  such.  It  takes  manly 
courage  to  be  a  gambler,  a  stage  robber  or  a  bank 
thief.  The  writer  knows  the  honest  gambler.  He 
with  others  counted  as  fairly  honest  men,  respect  the 
true  type.  It  requires  less  courage  than  the  coyote, 
to  legally  misrepresent  or  exaggerate  for  personal 
gain,  thus  taking  from  those  who  trust  you,  and 
it  is  plainly  assented  that  when  a  man  by  the  use  of 
a  superior  intelligence,  which  should  be  used  in  ben- 


118  ROCKS  IN  THE  ROAD  TO  FORTUNE 

eflting  mankind,  does  by  legally  garbled  reports, 
misrepresentations  and  word  painting,  with  the 
knowledge  that  he  is  immune  from  legal  prosecu- 
tion or  physical  danger;  thus  taking  money  without 
giving  just  equivalent;  without  telling  the  plain 
truth  he  is  bejond  the  pale  of  every  gambler  in 
the  entire  West.  In  this  chapter  attention  is  called 
to  the  claims  made  as  to  gambling  and  we  differ  on 
the  construction  they  place  upon  the  word. 

That  kind  of  operation  is  not  gambling;  it  is  mis- 
representation. Exaggeration  is  only  another  form 
of  the  word.  The  Western  gambler  would  be 
ashamed  to  be  classed  in  the  same  category  with 
these  men,  for  it  is  a  deadly  insult  to  class  him  with 
the  "sure-thing"  operator.  And  wherein  lies  the 
chance  taken  by  the  man  who  is  responsible  for 
these  unsound  enterprises?  In  promotions,  where 
from  one  hundred  thousand  dollars  to  two  hundred 
thousand  dollars  are  obtained  from  the  public,  the 
stock  lists  show  that  the  result  is  the  accumulation 
of  thousands  of  small  investments,  running  all  the 
way  from  |10  to  |100,  which  on  the  face  proves  that 
it  is  the  accumulation  of  labor;  for  the  rich  and  the 
gamblers  do  not  invest  in  that  modest  manner;  and 
that  those  men  of  moderate  means  are  trying  to  bet- 
ter their  condition.  It  is  safe  to  assert  that  if  those 
who  have  worked  hard  for  their  money  were  told 
that  they  were  gambling,  they  would  not  invest  a 
dollar,  A  study  of  the  various  advertisements  that 
have  preceded  the  many  disappointments  that  fol- 
low this  class  of  mining  does  not  impress  one  with 


I 


ROCKS  IN  THE  ROAD  TO  FORTUNE       119 

the  idea  that  they  are  appealing  to  gamblers,  but  to 
investors.  It  is  not  necessary  to  use  the  following 
language  if  you  are  appealing  to  a  gambler? 

"Safe  as  a  savings  bank,  but  the  interest  you 
will  receive  from  this  investment  is  four  times 
greater." 

"Why  let  bankers  use  your  money  to  buy  mining 
stocks  and  reap  the  profit  when  you  yourself  can 
gain  the  profit?  Do  not  wait.  Telegraph  your 
orders  at  our  expense.  The  rise  is  going  to  come 
to-morrow." 

"One  hundred  millions  in  sight!  All  we  need 
is  a  mill!" 

"Others  grow  rich  by  the  investment  of  a  few 
dollars;  why  not  you?" 

"Look  at  our  satisfied  customers  and  be  one  of 
them!" 

"This  stock  will  pay  100  per  cent,  per  annum." 

"We  guarantee  the  safety  of  this  investment, 
etc.,  etc." 

Is  this  the  language  that  anyone  would  use  to 
convince  a  gambler? 

No;  those  exaggerated  promises  and  no-fact  as- 
sertions are  intended  to  reap  the  harvest  won  by 
the  labors  of  the  poor;  and  the  commercial  miner, 
digging  his  well-won  stores  of  gold  and  silver,  is  in 
no  manner  a  party  to  the  crime. 

It  is  such  things  as  these  exaggerations — if  the 
word  "misrepresentation"  is  harsh — that  have 
brought  the  mining  industry  into  such  disrepute 
that  the  commercial  miner  is  to-day  unable  to  even 


120  ROCKS  IN  THE  ROAD  TO  FORTUNE 

obtain  money  from  the  public  to  increase  his  suc- 
cessful mill  capacity  or  purchase  new  hoisting 
plants  for  producing  mines.  Mining  is  not  a  gam- 
ble; it  is  one  of  our  grandest  industries.  Its  product 
is  imperishable.  It  creates  more  fortunes  and  pays 
larger  interests  than  any  other  of  our  national  in- 
dustries. It  is  not  necessary  to  misrepresent.  The 
people  will  buy  into  good  mines  when  the  plain 
truth  and  facts  are  told.  But  the  past  shows  that 
they  do  not  have  the  opportunity. 


I 


CHAPTER    XIII. 

MISLEADING  ADVERTISEMENTS— IS  IT 
INTENT  OR  IGNORANCE? 

If  an  attempt  were  made  to  reproduce  the  many 
sensational  advertisements  published  during  the 
past  ten  years,  in  which  extraordinary  promises  were 
made,  which  have,  so  far,  not  been  realized,  many 
volumes  would  be  required.  Consequently,  a  gen- 
eral review  of  such  announcements,  and  companies 
as  have  been  in  the  public  eye,  is  not  possible,  but 
the  results  of  any  one  of  the  most  positive  in  their 
sensational  promises,  and  assertions,  may  be  taken, 
as  a  right,  to  ask,  if  any  of  the  others,  equally  as 
positive,  have  resulted  in  any  manner  other  than 
failures,  that  is  to  say,  as  far  as  their  promises  are 
concerned.  The  reader  perhaps  now  recognizes  the 
right  of  the  commercial  miner  to  hold  the  name 
"mine"  sacred;  therefore,  when  a  man  says  he  has 
no  prospect,  but  has  a  mine,  it  is  assumed  that  his 
property  is  a  dividend  payer;  consequently  I  call 
attention  to  the  following  display  announcement, 
which  is  of  the  class  that  work  detriment  to  the 
miner  in  search  for  capital  for  legitimate  mine 
developments : 

"A  mine,  not  a  prospect,  but  you  can  purchase 
this  stock  at  a  prospect  price;  this  mine  has  been  a 

121 


122  ROCKS  IN  THE  ROAD   TO  FORTUNE 

winner  from  the  start!  At  the  grass  roots  the  ore 
ran  many  dollars  to  the  ton,  and  the  values  increase 
with  depth,  until  now  at  the  bottom  of  shaft,  assays 
show  values  from  $150  to  nearly  |1,000  per  ton. 
This  property  has  shipped  many  tons  of  ore,  and 
produced  profits  for  its  former  owners.  In  the 
opinion  of  the  best  mining  men  in  the  district,  this 
property  will  be  'a  shipper'  before  100  feet  is 
reached,  and  will  take  its  place  among  the  'pro- 
ducers' of  the  district.  Shares  25c.  per  share.  This 
stock  will  no  doubt  go  to  par  within  90  days." 

The  above  language  was  used  in  various  para- 
graphs of  a  three-column  advertisement,  published 
in  a  Western  paper  just  one  year  ago.  The  intent 
was  to  convey  the  impression  that  this  prospect 
was  past  the  period  of  doubt.  The  illustration  is 
simply  used  for  argument's  sake,  to  aid  in  asking 
if  the  commercial  miners  are  not  justified  in  their 
indignation  at  the  reckless  handling  of  the  word 
"mine,"  and  "dividend."  At  the  start  of  this  ad- 
vertisement the  claim  is  made  that  it  is  a  mine; 
strictly  speaking,  all  the  speculation  of  the  prospect 
is  passed;  it  has  arrived  at  the  great  dignity  of  a 
mine;  no  longer  a  prospect.  The  broker  tells  you 
this  in  plain  language,  and  as  an  evidence  of  the 
strength  and  value  of  the  property,  that  is  not  a 
prospect,  but  a  mine,  proceeds  to  put  the  high  valu- 
ation of  1375,000  on  the  total  stock  of  the  corpora- 
tion said  to  own  this  property,  for  figuring  the  stock 
at  twenty-five  cents  per  share,  the  price  is  |375,000 
to  the  man  that  buys  these  shares.    This  being  the 


ROCKS  IN  THE  ROAD   TO  FORTUNE       123 

figure  asked  for  commercial  mines,  it  adds  to  the 
claim  of  value  and  this  must  be  a  mine,  for  a  pros- 
pect would  not  be  considered  so  valuable.  Shaft 
No.  1  contains,  it  is  stated,  ore  of  high  grade,  but 
there  is  nothing  about  the  value  of  ore  taken  from 
No.  1  shaft,  which  by  numbering  the  shaft,  leads 
one  to  infer  that  there  are  a  number  of  other  shafts 
or  work.  I  have  since  found  out  that  the  main  shaft 
on  this  property  was  but  forty-seven  feet  deep  at 
the  time  this  advertisement  was  inserted.  The 
claim  is  that  the  ore  assays  .|150  to  the  |1,000,  but 
not  a  word  as  to  how  much  ore  of  this  character 
exists;  simply  the  statement  that  there  is  ore  that 
assays  those  high  figures. 

The  reader  will  remember  the  chapter  on  assays, 
its  bearing  upon  the  value  of  the  mine.  It  is  not 
questioned  that  an  assay  of  |150  to  |1,000  could 
have  been  obtained,  but  how  much  could  they  ship 
of  that  grade  of  ore,  if  they  were  called  upon  to 
prove  its  existence  in  commercial  bodies?  Way 
back  in  ancient  history,  it  is  claimed  in  this  an- 
nouncement, that  many  tons  were  shipped,  and  a 
profit  made  by  its  early  owners.  How  many  tons  of 
ore  could  be  shipped  from  a  forty-seven-foot  shaft? 
This  vital  point  is  not  considered.  Not  a  line  of  evi- 
dence as  to  the  number  of  tons,  or  the  amount  of 
profit,  nothing  but  the  appeal  to  buy. 

We  know  there  are  hundreds  of  slivers,  lodes 
and  ledges,  that  are  not  commercial,  but  which 
have  shipped  some  ore,  but  if  at  a  profit,  is  the 
question.    As  stated  in  other  chapters,  ore  has  been 


124  ROCKS  IN  THE  ROAD   TO  FORTUNE 

shipped  that  runs  two  or  three  hundred  dollars  a 
ton,  but  not  with  much,  if  any  profit,  so  that  ancient 
history  is  not  a  matter  of  fact  of  interest;  it  is  the 
present  in  which  the  investor  of  to-day  is  concerned. 
We  infer  that  a  few  tons  have  been  shipped,  but  the 
development  being  very  shallow,  the  tonage  must, 
indeed,  have  been  very  limited.  The  startling  an- 
nouncement is  here  made  that  the  miners  in  the 
district  are  of  the  "opinion"  that  this  mine  will  be 
a  shipper  before  the  depth  of  100  feet  is  reached. 
Here  we  again  face  "poor  old  opinion."  Reading 
the  advertisement  headed  "A  Mine,  not  a  Prospect," 
and  then  be  rudely  awakened  by  the  "opinion"  of 
the  best  miners  in  the  district,  used  as  evidence, 
that  they  will  ship  before  the  depth  of  100  feet,  is 
indeed  a  shock.  The  very  first  line  of  the  advertise- 
ment says  a  mine,  not  a  prospect.  What  becomes 
of  the  mine?  If  it  is  not  upon  a  paying  basis,  or 
a  strong  shipper,  why  is  it  called  a  mine?  It  is  in 
reality  anything  but  a  prospect.  I  admit  that  rich 
surface  ore  is  found  in  many  prospects,  and  that  a 
few  tons  of  rich  ore  have  been  shipped,  but  in  the 
end  these  prospects  were  abandoned,  yet  this  forty- 
seven  foot  hole  is  put  before  the  public  as  a  mine! 
And  for  fear  the  investor  may  not  realize  the  im- 
portance of  the  offering,  they  are  advised,  "not  to 
take  time  to  write,  but  to  wire  for  these  shares," 
with  this  important  line: 

"This  stock  will  no  doubt  go  to  par  within  ninety 
days,  but  you  will  have  to  get  orders  in  at  once." 

Just  to  think!     Less  than  a  hundred  feet  in 


ROCKS  IN    THE  ROAD   TO   FORTUNE      125 

depth,  not  shipping,  simply  promising  to  ship,  yet 
valued  at  |375,000  and  in  ninety  days  to  be  worth 
$1,500,000.  Is  comment  possible?  Why  the  in- 
centive to  sell?  Why  not  wait  ninety  days  and  reap 
the  enormous  profit  themselves?  Would  a  com- 
mercial miner,  with  any  knowledge  of  the  industry, 
write  such  trashy  advertisements,  with  the  inten- 
tion of  having  a  man  of  limited  means  telegraph  his 
money  to  buy  these  shares,  using  the  argument  that 
they  are  going  to  par  within  ninety  days,  when  no 
man  living  can  see  in  the  ground?  This  advertise- 
ment was  written  a  year  ago.  I  have  made  in- 
quiries, and  have  been  unable  to  find  that  the 
ninety-day  period  which  was  going  to  make  these 
shares  sell  at  par,  has  made  any  material  difference 
in  the  value  of  this  property. 

The  author  does  not  desire  the  reader  to  believe 
that  he  is  making  an  exception  in  the  selection  of 
this  evidence  of  misleading  announcements;  he  has 
not  taken,  with  deliberate  intent,  any  paper.  The 
quotations  made  are  from  an  issue  that  was  casually 
handed  to  the  writer  with  the  remark,  that  it  con- 
tained a  notice,  relative  to  one  of  the  mill  construc- 
tions in  which  the  author  was  interested;  and  while 
looking  through  the  paper,  the  idea  was  formed  for 
a  chapter,  in  which  the  language  used  in  these 
advertisements,  could  be  displayed  or  commented 
upon.  It  can  be  understood  that  these  advertise- 
ments are  not  as  radical  as  some  that  have  been 
published,  for  the  reason  that  the  paper  in  question 
makes  an  effort  to  keep  its  columns  fairly  clean. 


126  ROCKS  IN  THE  ROAD   TO  FORTUNE 

In  the  above  case,  however,  it  was  not  possible  to 
censor  the  language;  the  assertion  was  plainly 
made,  "A  Mine,  not  a  Prospect."  However,  taking 
another  advertisement  in  the  same  issue,  it  reads 
as  follows,  and  is  even  more  startling. 

"Take  a  flyer  in  one  of  the  greatest  gold  mines 
ever  discovered.  We  have  panned  seven  to  nine 
dollars  per  pound  in  gold  from  fifty  pound  lots  of 
this  ore.  We  will  be  shipping  pay  ore  by  Septem- 
ber.   The  property  will  be  a  payer  from  grass  roots." 

Here  are  men  who  claim  that  in  fifty  pound  lots 
they  are  able  to  pound  out  from  seven  to  nine 
dollars  a  pound  in  virgin  gold,  and  yet  they  are 
making  frantic  efforts  to  obtain  capital,  offering 
extraordinary  inducements.  This  is  one  of  the  most 
ridiculous  advertisements  I  have  ever  read.  They 
say  they  own  "forty  acres  of  this  rich  property,  and 
have  discovered  other  large  veins,  which  they  will 
locate,  together  with  their  extensions;  assays  run 
from  11,000  to  |132,000  per  ton."  The  above  is  only 
capitalized  for  $200,000,  of  which  |100,000  is  in  the 
treasury.  They  only  offered  in  the  beginning  50,000 
shares  for  sale,  at  ten  cents  a  share,  which  if  all  sold, 
without  paying  any  commissions,  cost  of  advertis- 
ing, etc.,  would  net  them  but  |5,000;  and  yet  they 
claim  they  have  panned  from  seven  to  nine  dollars 
a  pound  in  fifty  pound  lots.  If  they  would  pound  up 
700  pounds  of  this  ore  they  would  have  the  money 
they  are  asking  the  public  for. 

The  author  has  done  some  work  of  this  character 
on  surface   ores   showing  free   gold,   and   he   has 


ROCKS  IN   THE  ROAD   TO  FORTUNE      127 

crushed  and  panned  as  much  as  fifty  pounds  a  day. 
As  labor  in  any  mining  camp  is  not  much  over  four 
dollars  per  day,  and  the  cost  of  a  gold  pan,  with  ped- 
estal and  mortar  would  not  exceed  ten  dollars,  it  ap- 
pears strange  thatthere  should  be  any  demand  for 
money  in  property  of  this  character.  The  last  line  in 
the  advertisement  reads:  "Wire  for  reservations  and 
send  draft  at  once." 

Where  there  is  a  will,  and  the  material  exists, 
the  miner  will  find  a  way.  The  author,  on  the 
Dolores  River,  Colorado,  ground  up  grains  of  wheat 
in  a  coffee  mill  to  make  flour  upon  which  to  subsist. 

A  refreshing  change  in  the  language  of  an  ad- 
vertisement is  found  in  the  same  paper.  The  pro- 
moters are  bidding  for  capital.  The  writer  knows 
the  property  in  question.  He  knows  it  is  a  prospect, 
and  the  owners  know  it  is  a  prospect.  They  are 
seeking,  by  the  most  favorable  language  possible, 
consistent  with  truth,  to  create  a  good  impression 
yet  keeping  within  the  bounds  of  reasonable  fact, 
and  we  read  the  following: 

"Many  fortunes  are  made  in  a  day  by  well-selected 
mining  investments.  Perhaps  no  other  business  in 
the  world  can  build  fortunes  as  rapidly  as  honestly 
operated  mining.  The  start  is  generally  pros- 
pective. It  is  not  necessarily  a  gamble,  but  it  has 
to  do  with  seeking  a  hidden  treasure  of  unknown 
worth.  Ore  in  paying  quantities  may  be  encountered 
with  little  depth.  It  may  not  be  found  for  hundreds 
of  feet,  but  we  work  on  driving  a  tunnel  or  sinking 
a  shaft  getting  nearer  and  nearer  the  possibilities 


128  ROCKS  IN  THE  ROAD   TO  FORTUNE 

of  the  mine.  Perhaps  many  companies  that  have 
proven  successful  in  mining  have  started  with  no 
more  to  recommend  them  than  a  piece  of  prospect 
ground  almost  worthless  in  the  open  market,  but 
development  of  the  properties  has  made  many  such 
parcels  of  mineral  land  command  thousands  of 
dollars  in  but  a  few  months'  time — nature  provides 
the  possibilities  of  fortunes  in  mining. 

"Good  business  management  is  absolutely  essen- 
tial in  this  method  of  co-operating  with  nature.  The 
management  should  be  as  capable  in  its  line  as  in- 
dustrial administration  is  along  its  beaten  paths. 
Fools  may  stumble  onto  fortunes,  but  only  business 
men  can  make  those  fortunes  perpetually  profit- 
able. 

"These  fortune-builders  in  the  mineral  world, 
have,  during  the  past  three  decades,  built  up  in  gold 
mining  alone  an  annual  production  in  this  country 
of  1100,000,000." 

No  commercial  miner  can  find  fault  with  this 
language.  It  is  the  truth.  All  they  say  is  possible 
in  nature.    These  prospects  are  worthy  of  the  effort. 

We  turn  over  in  the  same  issue  two  pages,  and 
find  another  advertisement,  about  the  same  size, 
describing  a  corporation  with  a  capital  stock  of 
$5,000,000,  divided  into  five  million  shares  of  |1 
each,  par  value,  this  stock  being  offered  at  twenty- 
five  cents  per  share,  or  a  valuation  of  |1,250,000  on 
the  total  capital  stock.  In  this  announcement  we 
find  the  usual  revamping  of  what  other  mines  have 
done,  the  display  of  an  assay  certificate  showing 


ROCKS  IN  THE  ROAD  TO  FORTUNE      129 

that  a  specimen  of  rock  ran  twenty-one  per  cent,  of 
copper,  and  the  man  making  the  offer  to  the  public, 
says:  "I  know  all  about  this  property;  I  went  all 
over  every  part  of  it  before  I  allowed  my  name  to 
go  into  the  directory;  I  want  to  prove  to  you  that 
this  stock  is  the  best  buy  in  copper;  if  you  are  wise 
you  will  load  up  on  it,  for  we  propose  to  begin  ship- 
ping in  August.  There  are  no  difficulties  ahead  of 
this  company,  and  nothing  to  prevent  us  beginning 
the  shipment  of  this  ore  this  Spring;  there  are 
thousands  of  tons  of  ore  lying  in  the  creek  bottoms, 
which  run  from  $35  to  |50  per  ton  in  value."  Here 
is  another  case  of  where  there  has  evidently  been 
no  shipments,  nothing  upon  which  to  base  a  com- 
mercial opinion,  and  yet  the  public  is  asked  to  buy 
this  stock  at  the  rate  of  |1,250,000,  and  for  the  pur- 
pose of  showing  what  a  wonderful  property  they 
have,  they  outline  the  side  of  a  mountain,  and  say 
they  have  a  block  of  copper  worth  ten  million 
dollars,  "a  mountain  of  copper  ore,  where  we  expect 
to  take  out  ten  millions  in  copper." 

It  will  be  noticed  in  this  instance  they  say  we 
expect  to  take  out  ten  millions  in  copper.  "It  is  our 
intention  to  gather  up  the  rich  ores  that  lay  in  the 
creek  and  ship  them  to  the  smelters  at  once."  And 
they  further  say  that  in  their  estimates  they  have 
purposely  cut  down  the  percentage  of  copper  in  this 
great  block  of  ground,  which  they  have  not  opened, 
and  do  not  know  what  it  actualy  contains,  but  for 
estimating  they  cut  it  down  to  four  per  cent.,  al- 
though much  of  it  will  run  as  high  as  fifteen  per 


130       ROCKS  IN   THE  ROAD   TO  FORTUNE 

cent.,  so  they  say,  and  the  general  average,  they 
claim,  should  be  in  the  neighborhood  of  eight  per 
cent,  greater  than  the  average  of  the  world's  great- 
est copper  mines.  Not  a  word  in  this  advertisement 
about  even  one  ton  of  this  mineral  having  been 
shipped.  Not  a  word  about  even  two  hundred  feet 
of  development  work  having  been  done,  but  they 
say  they  are  going  to  do  this  work,  yet  they  ask  the 
public  to  pay  at  the  rate  of  |1,250,000  for  something 
that  is  in  the  primary  stages  of  a  prospect. 

The  writer  has  strictly  adhered  to  his  policy  of 
not  pointedly,  by  name,  referring  to  any  man  or  his 
work,  but  to  treat  the  subject  generally.  I  am  in 
the  business  of  mining.  I  want  to  buy  and  sell  pros- 
pects and  mines  in  the  future,  as  I  have  done  in  the 
past,  speculate  in  stocks  on  exchanges  as  long  as 
that  system  exists.  After  I  sell  a  prospect,  its 
future  rests  with  its  purchasers,  but  I  have  always 
tried  to  impress  on  them  that  it  is  better  to  get 
money  slowly  by  a  plain  statement  of  facts,  rather 
than  to  obtain  funds  upon  promises  that  could  not 
be  redeemed,  and  misrepresentations  that  only 
bring  sorrow;  that  word  painting  and  skillfully 
manipulated  intimations  in  an  advertisement  was 
not  the  proper  way.  In  reference  to  this  copper  ad- 
vertisement the  Spring  has  passed,  and  I  have  failed 
to  find  that  any  of  this  rich  ore  that  laid  in  such 
abundance  in  the  creeks  and  ravines,  has  been  ship- 
ped to  assist  even  in,  a  measure,  the  development 
work  contemplated.  It  would  not  surprise  me  if 
this    corporation    is   now    in    a    state    of   inocuous 


ROCKS  IN  THE  ROAD   TO  FORTUNE      131 

desuetude.  If  only  five  hundred  men  bought  the 
stocks,  there  are  five  hundred  men  who  may  not  be 
favorable  to  mining.  I  make  this  plain  non-ambig- 
uous remark:  No  commercial  miner  ever  wrote  that 
advertisement.  * 


*The  author  recently  met  one  of  the  promoters  of  this  Copper 
prospect,  and  was  informed  that  the  matter  was  written  by  an 
advertising  agent,  also  that  there  was  a  quarrel  among  the  owners. 


CHAPTER  XIV. 
THE  UNSOUND  DIVIDEND. 

Capital  is  liberal  when  frankly  dealt  with. 
When  misrepresentation  prevails,  then  capital  be- 
comes suspicious.  The  American  investor  is  most 
intelligent  and  daring,  but  he  demands  returns  in 
proportion  to  the  risk  involved.  When  promised 
returns,  the  realization  of  these  promises  is  ex- 
pected. Disappointments  and  delays  only  engen- 
der shaken  confidence.  It  is  the  word  "manipula- 
tion" and  deceiving  promises  that  have  driven  a 
great  deal  of  conservative  capital  from  mining, 
which  would  have  assisted  in  the  creation  of  new 
wealth,  if  it  knew  the  truth,  and  could  rely  upon  the 
evidence.  Much  of  this  is  due  to  the  unsound  claims 
as  to  the  time  and  the  amount  of  dividends  that  a 
mine  or  prospect  will  pay.  It  is  ignorance  of  the 
necessities  of  mining  that  has  caused  these  mis- 
takes, the  foolish  promises,  which  the  skilful  miner 
knew  could  not  be  realized,  even  considering  the 
enormous  possibilities  of  the  industry. 

The  dream  of  the  miner,  as  he  labors  in  the  bow- 
els of  the  earth,  poorly  clad,  subsisting  upon  coarse 
food,  sleeping  upon  hard  beds,  and  suffering  other 
privations,  is  that  his  efforts  may  result  in  winning 

132 


ROCKS  IN   THE  ROAD   TO  FORTUNE      133 

from  nature  a  new  dividend-paying  mine,  that  being 
the  final  goal  of  all  who  endeavor  to  win  wealth 
from  the  earth.  After  this  is  reached,  there  practi- 
cally ends  all  personal  want,  provided  the  ore 
shown  justifies  the  belief  that  the  mine  is  upon  a 
firm,  paying  basis.  No  longer  the  need  of  credit  at 
the  local  store,  no  more  appeals  to  capital  for  money 
with  which  to  prosecute  developments.  When  a 
mine  is  upon  a  sound  dividend-paying  basis,  the 
earth  itself  freely  gives  up  the  raw  material  of 
money,  and  smelters  or  custom  mills  give  the 
stamped  coin  in  exchange  for  this  material. 

The  highest  dignity  to  which  the  miner  aspires 
is  to  be  upon  this  basis;  the  prospect  has  then 
passed  through  the  period  when  it  requires  help  in 
its  development.  It  then  commences  to  return  all 
the  money  it  in  the  past  demanded  as  tribute  from 
man,  the  future  will  take  care  of  any  mine  require- 
ment; otherwise  it  would  not  be  upon  a  sound  divi- 
dend-paying basis  with  the  usual  large  reserves  of 
ore. 

In  the  old-fashioned  days  of  mining — which  for- 
tunately still  hold  sway  in  the  larger  commercial 
operated  properties,  organized  many  years  ago — 
mines  were  not  classed  as  on  a  paying  basis,  until 
ample  ore  was  exposed  to  justify  the  claim  that 
there  were  years  of  dividends  ahead.  Since  the 
coining  of  the  words  "Modern  Finance,"  the  divi- 
dend period  in  a  mine's  career  is  not  always  con- 
sidered the  same,  as  above  illustrated;  but  instead 
"high  financiers"  and  unsound  promoters,  recogniz- 


134  ROCKS  IN   THE  ROAD   TO  FORTUNE 

ing  that  the  dividend  period  is  the  attractive  point 
to  the  investor,  many  proceed,  with  either  deliber- 
ate intent,  or  ignorance,  to  ambiguously  announce 
in  language,  which  in  reality  does  not  in  law  express, 
that  their  mine  is  paying,  but  does  convey  the  idea. 
Thus  they  use  the  word  dividend  in  their  sensation- 
al advertisements  with  the  intent  that  the  inves- 
tor's eye  may  be  attracted  to  the  word  and  cause 
him  to  read.  If  he  be  of  a  susceptible  nature,  they 
figure  that  he  may  write  for  information;  then  fol- 
lows the  usual  literature,  they  recall  instances  of 
dividends  paid  by  other  mines,  statements  of  which 
have  no  commercial  bearing  upon  the  operations  of 
the  prospect  advertised,  in  which  the  correspondent 
is  asked  to  invest.  Not  one  out  of  a  thousand  of  the 
promotions,  which  have  in  the  past  been  lavish  in 
the  display  of  the  magnetic  word  "dividend,"  ever 
earned  even  one  per  cent,  upon  the  total  capital 
stock  of  the  company  promoted;  more  generally, 
they  have  never  earned  a  cent  of  net  profits. 

Careful  study  of  many  of  these  advertisements, 
wherein  the  display  of  the  word  "dividend"  is  made, 
will  show  the  reader  or  the  commercial  miner  that 
the  property  involved  is  simply  a  speculative  pros- 
pect; and  upon  a  cold  analysis  of  the  subject  matter 
published,  it  is  found  that  the  word  is  used  to  tell 
about  some  other  mine  that  has  passed  to  the  dig- 
nity of  a  profit  earner,  or  vaguely  refers  to  some  ex- 
pected dividend  from  the  prospect  in  question, 
which,  however,  may  never  mature,  unless  nature 
places  the  ore  in  the  property  to  make  possible  the 


ROCKS  IN  THE  ROAD   TO  FORTUNE       135 

dividends  expected,  a  fact  that  only  actual  results 
can  prove. 

Step  by  step  the  unsound  promoter  has  invaded 
the  most  sacred  avenues  of  mining,  until  at  last  he 
has  intruded  upon  the  most  cherished  of  all,  the  div- 
idend branch,  which  no  man,  until  the  word  painter 
and  misconstructor  studied  out  the  way,  ever  in- . 
vaded,  until  he  had  the  right,  by  an  absolutely 
sound  dividend-paying  mine;  but  the  modern  finan- 
cier found  the  way  to  obtain  benefits  by  using  the 
word,  without  at  law%  really  doing  so;  that  is,  to  get 
the  effect  without  misrepresentation  to  the  extent 
of  committing  a  crime.  In  the  sale  of  mining  stocks 
of  all  characters,  dividends  is  the  argument  used  to 
influence  the  investor;  that  is  the  point  that  he 
seeks,  the  turning  point,  that  leads  to  positive 
profit.  If  he  is  successful,  then  he  is  in  turn  held 
up  to  others,  as  a  living  example  of  the  profits  that 
come  to  those  who  risk  and  win.  Thus  we  find  or- 
dinary prospects  of  no  commercial  value  being 
classed  as  "about  to  pass  the  dividend  period;"  and 
the  stock  offered  for  sale  at  a  iew  cents  a  share,  the 
claim  being  that  "we  are  about  to  pay  dividends." 
This  intrusion  of  the  unsound  promoter  into  the 
dividend  avenue,  is  one  of  the  most  serious  of  all  the 
burdens  that  the  industry  is  forced  to  carry  through 
the  association  of  irresponsible  men.  The  public 
having  been  taught  that  the  dividend-paying  mine 
is  among  the  soundest  investments  in  the  world, 
naturally  is  confused,  if  he  finds  that  the  unsound 
elements  are  even  in  that  branch.     The  experienced 


136       ROCKS  IN   THE  ROAD   TO  FORTUNE 

man  will  understand  that  when  a  mine  Is  paying 
sound  regular  dividends,  there  is  no  necessity  of 
spending  thousands  of  dollars  in  the  public  press 
urging  people  to  buy  the  stock  at  great  sacrifice, 
for  the  mine  is  then  making  the  money  material. 

There  are  only  three  sides  to  the  dividend  prob- 
lem. 

The  mine  is  upon  a  sound  dividend-paying  basis, 
flooding  its  owners  with  wealth,  and  does  not  need 
any  further  help.  Consequently  no  necessity  for  a 
frantic  offer  to  sell  shares  at  a  low  figure. 

The  mine  is  preparing  to  pay  them,  but  is  not 
yet  doing  so,  consequently  it  is  still  a  prospect,  but 
it  has  good  ore  exposed  and  it  has  shipped  small 
lots,  proving  that  ore  does  exist.  But  it  is  not 
developed,  and,  from  a  commercial  standpoint  may 
never  pay. 

The  mine  has  been  well  opened,  ample  ore 
blocked  out;  a  test  of  its  value  has  been  made  by  a 
large  run;  several  hundred  tons  of  ore  having  been 
shipped  proves  its  value  to  be  commercial,  and  it 
may  be  said,  it  is  just  pushing  open  the  self-sustain- 
ing profit-sharing  door,  it  is  a  commercial  mine  as 
near  as  one  can  be,  without  positively  being  one. 
It  needs  the  installation  of  better  machinery  to 
make  the  mine  pay. 

The  promoter  who  confines  himself  to  the  truth 
can  deal  upon  either  one  of  the  three,  and  be  justified 
in  asking  the  aid  of  capital,  except  in  the  first  in- 
stance, when  the  request  must  necessarily  be  fol- 
lowed by  a  logical  reason,  the  mine  being  upon  a 


ROCKS  IN  THE  ROAD  TO  FORTUNE      137 

paying  basis,  but  when  the  word  "dividends"  is 
juggled  in  a  word  painted  advertisement  referring 
to  other  mines  that  do  pay,  simply  to  excite  inquiry 
or  further  investment  in  the  stock  of  the  corpora- 
tion covering  the  property,  or  to  invite  investment 
in  something  promoted  by  the  same  persons,  at  a 
high  valuation,  but  not  yet  upon  a  dividend-paying 
basis,  and  the  reference  to  dividends  in  some  other 
mine  only  made  for  the  purpose  of  attracting  an- 
swers to  the  advertisement,  there  arises  the  ques- 
tion as  to  the  sincerity  of  the  promoter,  or  the 
soundness  of  any  venture  where,  even  remote  mis- 
representations and  deception  are  practiced  by 
stretching  of  truth  to  perhaps  evade  the  stern  re- 
sults of  law. 

The  investors  who  can  buy  the  stock  of  a  divi- 
dend-paying mine  at  reasonable  figures  are  lucky, 
for  they  are  among  the  choicest  of  securities;  but 
the  promise  to  pay  a  dividend,  the  payment  of  an 
unsound  one  or  the  payment  of  a  dividend  on  a  few 
shares  in  a  corporation  where  the  majority  of 
shares  waive  their  right,  is  not  a  sound  system  of 
mining  finance.  The  writer  has  always  asserted 
that  upon  a  fair  valuation,  the  dividend  of  a  mine 
should  be  ten  per  cent,  to  entitle  it  to  a  valuation  at 
par;  in  other  words,  that  ten  per  cent,  should  be  paid 
each  year  upon  every  dollar  invested.  I  recognize 
that  this  is  not  the  system  followed  by  high  finan- 
ciers who  heavily  capitalize  mines,  that  are  capable 
of  paying  ten  per  cent,  upon  say  $1,000,000,  yet,  by 
increasing  the  shares,  cause  the  dividends  to  equal 


138      ROCKS  IN  THE  ROAD  TO  FORTUNE 

six  per  cent,  and  demand  par  for  the  stock.  The  com- 
bating of  this  system  is  obvious;  the  mine  is  not 
like  any  other  industrial  enterprise  that  can  be 
built  up  generation  after  generation,  where  the 
trade  mark  and  honesty  of  management,  good  ser- 
vices and  efficiency  are  of  value;  where  the  product 
sold  to  the  public  can  be  increased  year  after  year. 
But  in  the  mine  it  is  different.  The  ore  shoots  from 
which  mines  make  their  dividends  in  the  end  be- 
come exhausted,  some  shoots  may  hold  for  two 
years,  other  may  run  for  five  years,  some  for  one 
hundred  years,  but  there  finally  comes  the  end  of 
each  distinct  shoot,  every  ton  of  ore  taken  from  a 
mine  decreases  its  value  that  much.  Ore  does  not 
grow  during  the  life  of  a  man.  We  do  not  know 
how  many  millions  of  years  it  has  required  to  make 
ore.  so  we  can  only  figure  on  what  we  can  find  in 
sight,  therefore  in  addition  to  ten  per  cent,  on  a  mine 
stock,  there  should  be  a  redemption  fund  of  at  least 
five  per  cent,  set  aside  for  the  return  of  the  principal 
in  the  event  of  the  total  exhausting  of  the  ore 
bodies. 

This  dividend  question  is  so  important  that  I 
propose  to  discuss  it  in  all  its  ramifications.  Men 
may  not,  to-day,  be  interested  in  this  question,  the 
length  of  the  chapter  may  not  appeal  to  many,  but 
it  is  believed  that  some  day  each  man  may  have  oc- 
casion to  want  to  know.  I  would  like  this  volume, 
then,  to  be  at  hand. 

In  the  winter  of  1876  I  worked  upon  the  Little 
Annie  gold  mine  in  Southern  Colorado.     The  late 


ROCKS  IN  THE  ROAD  TO  FORTUNE      139 

U.  S.  Senator  Thomas  Bowen  was  owner.  I  was 
very  proud  of  a  large  Colt's  revolver  I  owned,  even 
wore  it  to  work.  One  day  Mr.  Bowen  noticed  that 
the  flap  of  my  revolver  sheath  was  buttoned  down. 
He  said,  "Bert" — I  was  called  by  my  middle  name 
in  those  days —  "You  may  never  need  that  gun,  but 
if  ever  you  do,  the  other  fellow  won't  give  you  time 
to  unbutton  it.  You  want  that  gun  ready  at  hand, 
for  quick  action,  if  you  need  it.  If  you  are  going  to 
need  it  you  will  need  it  bad,  you  want  your  hand  to 
fall  on  the  handle  at  the  time  you  do  need  it." 

It  is  the  way  with  this  book;  the  reader  may  not 
need  it  now,  or  for  years,  but  when  he  does,  I  would 
like  it  to  be  in  his  library,  where  his  hand  can  fall 
upon  it. 

Before  mine  dividends  can  be  paid,  they  must 
either  be  earned  from  mining  and  milling  ores,  or 
the  mining  and  selling  of  the  products  of  the  mines. 
In  both  these  cases  the  ore  must  exist.  After  ore  is 
found  to  exist  then  the  minimum  cost  of  extraction 
and  treatment  must  be  considered.  There  must  be 
a  system  of  reserves  outlined  that  a  continuous 
stream  may  follow,  for  a  dividend  paid  one  year  and 
skipped  the  next  is  not  the  sound  kind  that  invest- 
ors desire. 

The  layman  does  not  realize  the  labors  necessary 
to  equip  a  mine  for  a  dividend  payer.  The  exist- 
ence of  ore  does  not  end  the  operation.  There  must 
be  methods  conceived  and  established  for  economi- 
cal extraction  of  the  same.  Ore  reserves  must  be 
developed  which  can  be  called  upon  the  same  as  the 
surplus  of  a  bank  or  mercantile  business. 


140      ROCKS  IN   THE  ROAD  TO  FORTUNE 

In  all  well-regulated  dividend-paying  mines  the 
care  of  reserves  is  a  paramount  consideration,  the 
work  of  development  being  kept  ahead  of  these  ore 
bodies,  which  are  seldom  attacked  until  the  ordin- 
ary development  fails  to  uncover  new  ore.     Then 
the  mine  draws  upon  its  reserves  to  sustain  its  divi- 
dends, while  the  work  of  sinking  and  drifting  un- 
covers new  bonanzas.     Then  the  first  efforts  of  good 
miners  are  to  reimburse  the  reserves  drawn  upon. 
In  many  of  the  bonanza  mines  of  America,  Aus- 
tralia,    Mexico    and    Africa,    these    ore    reserves 
amount  in  value  to  many  millions  of  dollars,  and 
dividends  were  not  commenced  until  the  directors 
felt  that  the  reserves  would  enable  them  to  con- 
tinue the  same,  even  though  two  years  of  develop- 
ment work  should  in  the  future  be  required.     Con- 
sequently, it  is  estimated  that  nearly  thirty  per  cent, 
of  the  total  expenses  of  operations  in  well-regulated 
mining  companies  is  charged  to  the  reserve  account. 
It  is  ignorance  of  these  necessities  of  mining 
that   causes   well   intentioned   promoters   to   make 
mistakes  in  promising  dividends   before  these  re- 
serves are  established,  thus  we  find  men  sinking, 
doing  a  little  drifting,  and  in  so  doing,  extracting  a 
little  ore,  which  they  sell,  and  because  it  returns  a 
trifling  profit,  they  claim  the  dignity  of  paying  divi- 
dends. 

There  are  several  forms  of  what  I  term  unsound 
dividend-paying  promotions.  As  has  been  fre- 
quently stated,  the  views  herein  expressed  are  my 
own.  I  do  not  question  the  legal  right  of  any  man  to 


ROCKS  IN  THE  ROAD   TO  FORTUNE      141 

do  as  he  may  deem  fit;  he  may  have  the  right  at  law, 
but  the  question  asked,  is  it  morally  right  to  do  the 
various  things,  which  the  author  says,  by  experi- 
ence, by  the  net  result,  proves  profitable  to  a  few, 
and  non-profitable  to  thousands,  and  further,  places 
the  industry  in  a  false  light.  Old-fashioned  miners 
look  for  the  net  results,  something  sound  and  per- 
manent. If  the  new  order  of  mine  financiering, 
where  there  is  no  absolute  net  result  beyond  the 
semblance  of  a  result,  is  the  beneficial  one,  then  I 
admit  that  the  ideas  of  the  commercial  miner  are 
moss-covered  and  entirely  out  of  date. 

To  my  idea,  the  mine  dividend,  paid  by  a  com- 
pany organized  as  a  mining  company  and  before  the 
world  as  such,  is  the  net  results  from  mining  ore, 
the  milling,  smeltering,  or  sale  of  the  same,  or  from 
net  royalties  from  ore  extracted,  the  dividend  being 
paid,  after  all  expenses  of  every  kind  have  been 
deducted  from  the  ore  proceeds,  and  only  declared, 
after  the  mine  has  been  well  opened,  and  there  is 
exposed  large  bodies  of  ore,  to  sustain  the  draft  of 
the  operators  to  pay  many  following  dividends. 
Not  the  payment  upon  a  few  shares  for  the  purpose 
of  special  attention,  but  upon  all  the  outstanding 
shares.  Not  to  sell  stock  from  the  treasury  to  pay 
cost  of  labor,  office  expenses  and  advertising,  that 
the  entire  proceeds  of  the  smelter  check  may  be 
called  dividends.  Not  dividends  paid  from  some 
other  avenue  of  trade,  but  paid  from  ore,  honestly 
won  from  nature,  at  a  firm  net  result.  I  admit,  that 
I  am  not  modern  in  high  finance,  but  the  assertion 


142  ROCKS  IN   THE  ROAD   TO  FORTUNE 

is  made  boldly  that  there  is  no  profit  from  mining 
unless  it  be  a  net  profit,  the  reader  has  his  right  to 
form  his  own  conclusions;  what  is  written  is  what 
I  have  been  taught  to  believe. 

As  an  example  we  will  say  that  a  corporation  is 
organized  and  its  entire  capital  stock  issued  for  a 
prospect.  The  capital  may  read  |5,000,000,  of 
which  13,000,000  is  paid  to  the  owner  of  the  pros- 
pect and  12,000,000  is  placed  in  the  treasury.  A 
commission  contract  with  some  fiscal  agent  is  ex- 
ecuted, wherein  he  agrees  to  try  and  sell  the  treas- 
ury stock  for  a  compensation  of  40  per  cent,  of  every 
dollar  he  raises,  and  further  the  promoter  gives  him 
a  bonus  in  stock  from  the  |3,000,000  held  by  the 
owners.  First  the  agent  offers  500,000  shares  for 
sale  at  twenty-five  cents  per  share  thus  placing  a 
valuation  of  |1,250,000  upon  this  prospect,  that 
perhaps  never  shipped  a  hundred  tons  of  ore.  Ad- 
mitting, as  the  work  progresses,  they  open  ore,  or 
the  ore  that  may  have  been  shown  at  the  surface 
continues,  and  after  two  hundred  feet  of  work  has 
been  done,  they  have  extracted  |5,000  gross  value  of 
ore,  at  say  an  expense  of  |7,000.  From  this  $5,000 
of  ore  must,  however,  come  the  cost  of  transporta- 
tion and  smelter  charges,  the  net  result  may  be 
$2,500;  not  figuring  cost  of  extraction.  Now  the 
idea  of  modern  mine  finance  commences  to  be  ac- 
tive. The  prospect  has  shipped  ore,  to  the  inex- 
perienced this  is  evidence  that  it  will  always  ship; 
the  agent,  interested  in  his  commissions  and  his 
promoters  shares,  has  a  personal  reason  for  wishing 


ROCKS  IN  THE  ROAD  TO  FORTUNE      143 

the  world  to  know  that  the  prospect  has  shipped. 
The  more  stock  he  sells,  the  larger  his  commission 
account,  in  addition  he  may  have  an  opportunity  to 
sell  a  few  of  his  promoter's  shares,  in  which  case 
he  takes  it  all;  the  mine  does  not  receive  a  dollar, 
yet  its  burden  has  been  increased  that  much.  Per- 
haps the  promoter's  stock  is  pooled,  then  his  incen- 
tive to  increase  his  commission  is  stronger. 

No  matter  who  may  be  responsible,  agent  or 
owner,  if  they  reason  that  they  can  sell  more  shares 
by  advertising  that  they  are  shipping  ore,  than  they 
could  possibly  do  by  a  plain  statement  of  the  fact 
that  the  prospect  is  not  yet  paying,  they  are  then 
"word  painting"  and  in  a  measure  misrepresenting, 
thereby  doing  the  industry  an  injustice.  The  reason 
is  generally  lacking  in  these  cases,  the  personal  in- 
terest overpowers  reason,  it  is  boldly  stated  that 
they  are  upon  a  shipping  basis,  the  stock  is  ad- 
vanced to  thirty-five  cents  per  share,  adding 
1500,000  additional  value  to  the  yet  non-commercial 
prospect. 

The  writer  has  heard  this  defended  by  saying 
that  a  large  part  of  the  treasury  stock  is  still  un- 
sold, but  this  logic  is  not  sound.  If  a  man  buys  only 
one  hundred  of  these  shares  at  thirty-five  cents  per 
share,  he  pays  at  the  rate  of  |1,750,000  for  the  pros- 
pect, figuring  its  capital  stock  at  |5,000,000.  He 
pays  $500,000  more  than  the  man  who  made  his  pur- 
chase the  month  before. 

The  campaign  of  education  starts,  the  advertise- 
ment reads  generally  of  this  order: 


144      ROCKS  IN  THE  ROAD  TO  FORTUNE 

"Eureka!  On  the  high  wave  of  success!  Follow 
the  mine  makers!  Put  your  money  where  it  will 
work  while  you  sleep.  Last  month  we  offered  you 
this  stock  at  twenty-five  cents  per  share,  now  it  has 
advanced  to  thirty-five  cents  a  share  and  climbing 
to  the  dollar  mark.  We  are  shipping  ore,  we  are 
doing  that  which  our  competitors  said  we  could  not 
do  under  a  year.  We  are  shipping  ore  and  the 
profits  are  going  to  our  fortunate  stockholders." 

There  is  not  a  word  to  inform  the  investor  just 
how  much  ore  was  shipped  to  justify  the  raising  of 
the  price  |500,000.  The  man  with  the  commission 
contract  may  be  able  to  tell,  for  in  the  first  instance 
he  received  forty  dollars  on  each  400  shares  of  the 
stock  sold,  now  he  receives  fifty-six  dollars  on  the 
same  number  of  shares;  in  other  words  if  the  reader 
pays  |140  for  400  shares,  the  broker  takes  fifty-six 
dollars,  which  is  considered  very  heavy  compensation 
in  all  legitimate  investments,  but  a  common  one  in 
prospect  promotion,  as  explained  in  the  chapter  on 
commissions. 

As  will  be  noticed  there  is  no  statement  of  fact 
in  the  announcement,  beyond  wherein  it  is  stated 
that  the  company  has  shipped  ore,  a  complete 
silence  on  the  vital  points  of  how  much  ore  was 
shipped  and  the  net  value  of  the  same. 

Generally  two  months  are  given  for  the  effect  of 
the  startling  announcement  that  ore  has  been 
shipped  to  run  its  course,  then  there  may  appear  a 
more  blood  quickening  advertisement,  reading 
something  like  the  following: 


ROCKS  IN  THE  ROAD   TO  FORTUNE      145 

"Some  men  allow  opportunities  to  beat  in  their 
doors  before  they  conclude  to  see  who  is  rapping; 
we  have  been  telling  you,  importuning  you,  to  buy 
this  stock  at  thirty-five  cents  per  share,  now  it  is  too 
late.  The  advance  has  been  rapid.  It  is  now  fifty 
cents  per  share.  Why?  Because  we  are  paying 
dividends.  The  price  will  be  fifty  cents  a  while 
longer,  then  it  will  start  climbing  to  a  dollar. 
Yet  some  men  allow  their  neighbors  to  grow  rich 
right  under  their  noses.  Better  get  in  while  this 
allotment  at  fifty  cents  per  share  lasts.  Be  in 
with  the  Mine  Makers.  Wire  your  orders  at  our 
expense." 

Here  again  we  see  no  evidence  of  a  statement  of 
fact,  upon  which  a  grand  jury  could  act,  the  only 
one  being,  "we  are  paying  dividends,"  a  very  close 
assertion;  they  do  not  claim  the  mine  is  paying  divi- 
dends, but  "we  are  paying,"  meaning  the  person,  to 
the  world  the  prospect  has  apparently  arose  to  the 
dignity  of  a  dividend  payer,  the  stock  has  been  ad- 
vanced and  the  prospect  is  now  valued  at  |2,500,000, 
yet  not  a  vestige  of  evidence  as  to  how  the  dividend 
was  paid,  the  amount,  or  the  number  of  shares  upon 
which  it  was  paid. 

Has  not  the  reader  often  seen  the  progress  of 
such  organizations?  Have  not  the  rapid  increasing 
values  in  stocks  been  flaunted  in  your  face,  accom- 
panied by  the  warning,  "Don't  be  too  late.  Wire  in 
your  orders  at  our  expense."  Can  the  reader  recall 
even  one  of  those  promotions  that  are  to-day  upon  a 
healthy  basis?  That  these  publicity  dividend  prop- 


146       ROCKS  IN   THE  ROAD   TO  FORTUNE 

ositions,  where  much  is  promised,  have  held  their 
sway,  especially  during  the  craze  for  stocks  in  new 
districts,  there  is  no  question.  The  files  of  many 
papers  sustain  the  charge. 

The  subject  of  their  misleading  nature  has  been 
discussed  in  the  chapter  on  the  evidence  of  sensa- 
tional advertising.  A  hypothetical  reference  to 
one  class,  carries  the  nature  of  all,  where  the  divi- 
dend period  is  prematurely  born,  when  the  inevi- 
table results  follow,  the  investigation  shows  self 
interest,  ignorance  and  inexperience.  We  cannot 
accept  the  "belief  excuse"  or  the  "I  was  informed 
defense"  for  each  time  these  unwarranted  rises  in 
value  took  place  there  was  a  motive,  and  it  is  plain 
that  it  was  personal. 

It  is  true,  that  investors  could  have  written  and 
ascertained  how  these  so  called  dividends  were 
paid.  Legal  advisers  w^ho  are  bright  enough  to  be  in 
the  class  that  our  President  intimates,  "Burn  the 
midnight  oil  to  keep  their  clients  within  the  revised 
statutes,"  a  statement  to  which  Joseph  Choate  called 
the  attention  of  the  bar  a  few  nights  ago — will  ad- 
vise the  promotor  to  either  not  answer,  or  to 
answer  truthfully,  the  reason  being  that  only  one 
out  of  a  thousand  readers  ever  take  the  trouble 
to  investigate,  assuming  that  what  is  said  be  true. 
The  man  who  does  ask  unpleasant  questions  can  be 
well  lost,  as  an  investor,  either  by  no  answer,  or  a 
plain  answer,  the  latter  preferred,  because  he  is 
only  one  of  a  thousand,  and  ever  after,  there  is 
legal  evidence  that  the  promoters  did  not  hesitate 


ROCKS  IN   THE  ROAD   TO   FORTUNE      147 

when  asked  to  give  a  plain  statement  of  fact.  But 
what  is  the  position  of  the  man  who  does  not, 
either  through  oversight  or  lack  of  experience, 
read  between  the  lines,  take  these  precautions.  The 
man  who  reads  and  believes,  his  sufferings  over  his 
loss  must  weigh  something,  especially  if  his  money 
has  been  won  hard,  and  if  it  is  his  first  won  dollars 
that  are  risked.  This  I  say  is  unfair,  for  one  man 
by  his  superior  ability  to  juggle  words  and  evade 
the  responsibility  of  his  acts  by  legal  precaution,  to 
take  from  the  less  gifted  without  giving  just  equiv- 
alent. 

Men  engaged  in  high  mine  finance  are  ever 
active  to  make  money  by  means  that  are  startling  in 
their  audacity.  It  has  been  known  that  dividends 
have  been  paid  upon  shares  covering  mines  not  even 
in  activity  at  the  time  of  payment,  in  the  interim 
the  sale  of  stock  was  in  progress.  In  one  case  the 
directors  sold  to  the  fiscal  agent  the  future  product 
of  a  prospect — that  dividends  might  be  paid,  as 
they  considered,  legally.  Another  case  the  dump 
was  sold  to  the  fiscal  agent  and  the  cash  received 
used  in  paying  dividends,  but  in  these  instances  the 
promoter  controlled  nearly  all  the  stock,  and  was 
making  preparation  for  the  legal  defence  that,  the 
money  paid,  had  been  legitimately  earned  in  a 
branch  of  mining,  that  if  a  man  wanted  to  buy  a 
dump,  the  corporation  had  the  right  to  sell,  and 
could  divide  the  proceeds  among  the  stockholders. 
The  writer  does  not  question  the  right  to  sell  or 
to  divide,  the  thought  arises,  is  it  with  honorable 


148       ROCKS  IN  THE  ROAD   TO  FORTUNE 

intent.  I  know  of  an  instance  where  a  man  had 
placed  a  prospect  upon  the  New  York  curb  at  |5.00 
per  share,  and  during  the  "craze"  increased  the 
capital  stock  several  millions,  then  utilizing  some 
mules  packed  a  little  base  bullion  over  mountains 
to  the  sea,  declared  a  dividend,  I  am  told,  upon  a 
limited  number  of  shares,  and  worked  the  stock 
up  to  114.00  per  share;  a  close  friend  sent  me 
an  order  to  buy  at  flO.OO.  I  pleaded  with  him  to 
be  cautious,  explained  that  I  knew  there  was  noth- 
ing, as  yet,  commercial  behind  it,  that  I  knew  the 
men,  had  interviewed  miners  who  had  examined  the 
property,  but  the  "inside  influence"  prevailed  and 
he  bought  and  bought.  One  week  ago  he  told  me 
that  he  was  in  .|64,000.  The  stock  he  purchased  at 
such  high  figures  is  to  day  quoted  in  a  weak  market, 
at  less  than  one  dollar  per  share.  Here  is  a  striking 
example  of  the  results  of  the  premature  dividend. 
When  the  writer  first  found  this  gentleman  he  was 
wealthy,  broad  minded,  and  willing  to  risk  a  little 
in  legitimate  mining,  in  the  hope  of  the  profits  that 
come  to  the  holders  of  paying  mines.  He  had  much 
influence,  but  to-day  he  and  his  influence  is  lost  to 
mining.  It  will  take  years  for  his  wounds  to  heal; 
a  poor  struggling  operator  with  a  good  prospect 
will  receive  but  slight  consideration  at  his  hands. 
You  can  not  sell  this  man  a  piece  of  quartz  contain- 
ing ten  dollars  of  free  gold  for  five  dollars. 

Here  is  a  single  example  of  the  loss  to  the  in- 
dustry, to  those  who  are  sound  in  their  operations 
and  assertions.     It  is  useless  to  say  to  him:  "You 


ROCKS  IN  THE  ROAD   TO  FORTUNE       149 

were  in  with  bad  management;  we  are  paying  divi- 
dends." This  argument  has  no  weight.  He  replies, 
"Yes,  I  know,  |64,000  worth  of  the  mine  that  pays 
dividends."  Who  is  the  gainer,  who  the  loser,  in 
this  case?  A  few  men  benefited  to  some  extent, 
by  this  premature  payment  of  a  dividend  upon  a 
few  shares,  the  investor  lost,  but  the  injury  to  that 
broad  commercial  avenue  travelled  by  honest  men 
who  do  mine  is  beyond  calculation.  Its  result  will 
be  felt  for  years.  Men  with  limited  means,  seeking 
aid  to  open  some  promising  ore  shoot,  will  feel  it 
severely;  the  residents  of  that  particular  district, 
in  which  the  mine  is  located  will  feel  it. 

The  editor  of  a  paper  recently  remarked  that  I 
was  radical  in  virtually  classing  certain  promoters 
as  unsound,  that  there  were  honest  men  engaged  in 
mine  exploitation.  He  is  right,  there  are  many  men 
to-day  seeking  capital  upon  honest,  plain  state- 
ments of  facts;  they  are,  however,  combating  the 
effects  of  that  of  which  I  speak.  My  remarks  are 
plain;  there  is  nothing  ambiguous  about  them;  in 
this  volume  there  is  no  direct  individual  charge.  I 
say  that  the  promotions  floated  by  sensational  ad- 
vertising and  misrepresentation  never  pay  one  time 
in  a  thousand;  that's  a  broad  statement,  no  quali- 
fications, but  a  plain  blunt  charge  that  not  over  one 
time  in  a  thousand  do  they  ever  result  in  healthy 
paying  properties,  and  even  the  one  exception  will 
perhaps  be  the  result  of  blind  luck,  while  on  the 
other  hand  seventy  per  cent,  of  the  commercial 
operated  mines  do  return  profits.    Those  who  are  in 


150       ROCKS  IX   THE  ROAD   TO  FORTUNE 

the  line,  which  I  assert  is  not  sound,  have  the  rig^ht 
to  prove  that  I  am  not  telling  the  truth.  Any 
reader  of  this  book  will  admit  that;  I  say  every 
man  has  a  right  to  ask  the  aid  of  capital  to  open  a 
prospect.  I  have  stated  some  of  the  greatest  for- 
tunes are  made  through  investing  in  the  prospect 
period,  but  it  is  claimed  that  a  statement  of  facts 
should  follow,  and  this  statement  may  carry  refer- 
ence to  the  mines  in  the  same  district  or  local  con- 
ditions. No  dividend  should,  however,  be  paid 
unless  the  mine  by  its  ore  reserve  can  continue  in 
their  payment;  not  to  pay  a  few  dividends,  un- 
soundly won,  for  the  purpose  of  selling  stock,  only 
to  face  the  usual  results  when  the  profits  distribu- 
tion does  not  continue. 

As  to  terming  a  man  a  thief,  I  have  no  right, 
unless  I  know  him  to  be  such.  Perhaps  my  concep- 
tion of  what  constitutes  a  thief  may,  like  my  ideas 
of  honesty,  not  be  modern.  A  thief  is  one  who 
steals;  the  manner  of  the  stealing  may  differ.  Is  it 
only  the  man  who  robs  your  house,  or  picks  your 
pocket,  that  comes  within  the  definition  of  the  term 
"thief?"  If  so,  then  why  is  a  dishonest  bank  pres- 
ident, or  trustee,  termed  a  thief,  when,  without 
robbing  your  house  or  picking  your  pocket,  he  con- 
verts to  his  own  use  your  property  by  another  form? 
In  so  taking,  both  risk  imprisonment;  they  have 
the  manly  courage  to  rob,  with  a  knowledge  that 
they  will  be  punished  if  apprehended. 

Now  we  take  the  other  side,  the  side  of  the 
coward.    He  takes  your  money  by  a  system  of  word 


ROCKS  IN   THE  ROAD   TO  FORTUNE      151 

juggling,  misrepresentation  and  unsound  evidence 
of  value,  he  publishes  circulars  or  makes  that, 
which  to  the  inexperienced,  apparently  says  yes, 
when  at  law  it  means,  I  am  not  positive,  or  a.  plain 
no.  He  promises  that  which  he  is  aware  he  has  no 
reasonable  chance  of  redeeming.  If  you  invest  in 
the  securities  offered,  believing  the  statements,  as 
you  read  them,  to  be  true,  then  when  disappoint- 
ment follows,  you  find  the  maker  of  the  statements 
is  immune  from  punishment,  because  under  the  law 
his  yes  did  not  mean  yes,  his  promises  of  a  kind 
not  amenable  to  law,  that  in  the  payment  of  a 
dividend  that  he  had  not  overstepped  the  statutes; 
he,  having  induced  you  to  part  with  your  money 
without  giving  you  just  equivalent;  what  would  be 
the  term  you  would  apply  to  that  man? 


CHAPTER  XV. 

EXAMPLES  OF  UNSOUND  DIVIDEND 

PAYMENTS 
EFFECT  OF  DECEPTIVE  LITERATURE 

Many  unsound  systems  for  the  apparent  payment 
of  dividends  have  been  carefully  worked  out;  some 
are  ingenious,  some  are  crude  and  quickly  find  their 
end;  others  more  intelligently  planned  have  longer 
existence.  Some  of  the  boldest  operators  have  taken 
a  hand  in  the  "dividend  field"  and  the  audacity  of 
their  work  is  appalling. 

A  body  of  men  associate  themselves  together,  ob- 
tain a  prospect  and  commence  to  sell  stock.  A  re- 
view of  the  splendid  dividends  paid  by  legitimate 
mines  is  made.  They  may,  or  may  not  be  mining  ore, 
but  the  intent  is  to  make  it  appear,  that  they  are 
mining  upon  commercial  lines,  if  they  are  of  the 
bolder  type, — this  is  not  an  overdrawn  example, — 
they  advertise  something  in  the  following  order: 

"Dividends,  dividends,  our  fourth  dividend  of  two 
per  cent,  per  month  has  been  paid,  our  next  one  will 
be  paid  on  the  15th — were  you  present  at  the  last 
melon  cutting?  No?  Then  we  extend  you  an  in- 
vitation for  the  next  slicing,  on  the  15th.    Send  in  an 

152 


ROCKS  IN   THE  ROAD   TO  FORTUNE       163 

order  for  a  few  shares  of  this  fortune  building  stock, 
this  sound  dividend  payer;  millions  in  sight." 

You  are  impressed.  Two  per  cent,  per  month 
means  twenty-four  per  cent  per  annum.  |1,000  in- 
vested gives  you  an  income  of  $240  per  year.  Your 
|1,000  may  be  in  a  savings  bank,  drawing  thirty  dol- 
lars per  annum,  you  read  the  stereotyped  matter: 
"Why  leave  your  money  in  banks  at  three  per  cent, 
when  we  can  pay  you  twenty-four  per  cent.?"  You 
are  an  honest  man,  never  having  been  associated 
with  the  high  financiers  of  the  day;  you  do  not  reason 
and  study  like  the  man  skilled  in  the  ways  of  the 
unsound,  you  do  not  see  that  there  is  not  a  word 
in  the  advertisement,  wherein,  they  say  the  two  per 
cent,  per  month  is  earned  by  ore  extracted  from  a 
mine.  You  read  the  name  of  the  mining  Company, 
you  assume  that  it  is  money  won  from  nature,  and 
you  draw  your  savings  and  invest. 

Your  money  then  goes  into  bank,  to  their's,  or 
some  credit  other  than  your  own,  as  far  as  you  are 
concerned  it  is  gone.  On  the  next  dividend  day  you 
do  receive  two  per  cent.,  the  same  amount  on  the 
next,  and  the  next  dividend  day,  but  it  is  only  a 
part  of  your  own  thousand  dollars  that  you  are  re- 
ceiving. 

In  the  interim  you  are  urged  to  buy  more  shares 
or  interest  your  friends,  and  being  anxious  to  do 
your  acquaintances  a  good  turn,  you  do  bring  it  to 
their  notice,  thus  innocently  adding  to  their  mis- 
fortune. You  have  failed  to  reason  that  any  mine 
paying  two  per  cent,  does  not  have  to  advertise  its 


154  ROCKS  IN  THE  ROAD   TO  FORTUNE 

shares  or  sell  at  a  sacrifice;  that  even  one  per  cent, 
per  month  does  not  go  begging  even  in  the  West, 
where  the  common  bank  rate  is  eight  per  cent.,  you 
have  failed  to  ask  yourself  the  common  question — if 
this  is  a  sound  twenty-four  per  cent,  investment  why 
are  they  so  anxious  to  sell?  Finally  you  learn  the 
truth,  when,  either  the  United  States  Postal  Author- 
ities interfere,  and  you  receive  back  your  un- 
answered communication  relative  to  the  non-receipt 
of  your  dividend,  marked  "Fraudulent,"  or  the  pro- 
motors  feeling  that  they  have  returned  to  you  all 
that  you  should  receive,  pocket  the  remainder  and 
leave  for  parts  unknown.  Then  what  do  you  and 
your  friends  do?  You  stamp  mining  as  unsound,  a 
fraud,  when  in  truth  you  have  not  been  in  mining 
at  all. 

Does  the  reader  realize  that  such  barefaced  frauds 
have  been  perpetrated?  It  does  not  seem  reason- 
able, but  it  is  the  truth.  If  they  exist  again,  it  will 
be  the  public's  own  fault,  for  to  speak  plainly,  it  is 
the  demand,  the  rapacity  of  inexperienced  people 
for  quick  and  unreasonable  profits  from  mines.  They 
expect  too  much,  and  that  before  the  mines  are  even 
opened. 

There  are  many  fine  producing  mines  that  do  pay 
two  per  cent,  per  month  upon  reasonable  capitaliza- 
tion, and  they  have  been  paying  it  for  years,  some 
mines  pay  much  more  than  this,  but  the  shares  are 
not  sold  by  sensational  advertisement;  it  is  earnestly 
desired  to  have  it  understood,  that  the  commercial 
miners  are  in  no  manner  a  party  to  transactions, 


ROCKS  IN   THE  ROAD   TO  FORTUNE      155 

such  as  are  here  illustrated,  they  regret  them,  and 
make  efforts  to  stop  the  practice,  where  the  courts 
are  appealed  to  examples  are  made;  but  just  so  long 
as  the  Eastern  investor  does  not  exercise  common 
sense  in  the  purchase  of  mining  shares  the  commer- 
cial miners  will  be  kept  busy  denying  any  re- 
sponsibility. 

A  fraud  such  as  here  described,  is  easy  to  run 
down;  every  mine  paying  two  per  cent,  is  well  known 
and  inquiries  can  be  quickly  made;  it  is  not,  how- 
ever, as  easy  to  correct  the  effect  of  those  who  oper- 
ate close  to  the  mines,  that  is,  the  inexperienced 
broker  who  makes  his  promotions  from  the 
mountains,  to  the  Eastern  investor,  the  loca- 
tion of  the  operator  conveys  the  impression 
that  they  are  miners,  when  the  announcement 
of  a  dividend  is  not  accompanied  by  a  state- 
ment of  how  it  is  earned,  the  cure  becomes  more 
difficult.  The  Charter  of  mining  corporations  are 
in  cases  sweeping,  and  the  legal  right  to  pay 
dividends  from  many  avenues  is  allowed;  such 
as  services,  stock  speculations,  results  from  real 
estate  deals,  sale  of  mines,  or  sale  of  contracts.  Yet 
when  the  announcement  is  made  the  assumption  is 
carried,  that  it  was  won  from  ore  taken  from  mines. 
One  of  the  evils,  is  the  neglect  to  state  the  total 
cash  amount  of  the  dividend,  which  may  only  be 
11,000,  then  it  may  be  $50,000,  if  the  sum  total  was 
known,  the  public  would  invest  upon  the  evidence, 
but  the  promoters  evade  this  point  and  instead  use 
the  space  to  call  themselves  successful  and  say:  "Get 
in  with  the  mine  makers." 


156       ROCKS  IN   THE  ROAD   TO  FORTUNE 

There  is  a  large  amount  of  fine  gray  matter  lost  in 
conceiving  these  plans,  which  could  be  much  better 
employed,  and  that,  at  the  result  of  more  profit  and 
more  pleasure,  for  in  the  end  nearly  every  one  of 
these  unsound  promoters  lose  all  they  obtain;  they 
have  few  happy  moments;  there  must  be  some  re- 
morse in  the  knowledge  that  you  take  from,  but  do 
not  give;  there  must  also  be  ever  before  them  the 
fear  of  loss  of  their  liberty,  or  physical  harm  from 
those  whom  they  cause  to  suffer,  but  new  ones 
spring  up  as  the  others  pass,  for  each  year  we  wit- 
ness new  methods  of  saying  yes,  yet  at  law  mean- 
ing no. 

A  man  may  organize  a  corporation  with  a  capital 
stock  of  1100,000,  issue  it  all  to  himself  or  associates 
for  services,  contracts  or  some  prospect  hole.  He 
sells  a  few  shares  and  calls  himself  a  mining  presi- 
dent, at  the  same  time  he  may  be  dabbling  in  mer- 
cantile pursuits — a  life  or  fire  insurance  agency, 
teaming,  selling  real  estate,  buying  and  selling  ore. 
With  the  money  thus  earned,  he  will  declare  a  divi- 
dend upon  the  stock  of  the  company  he  has  fostered, 
and  pay  one  per  cent,  per  month  to  those  who  hold 
the  few  shares  he  may  have  sold,  as  he  may  hold 
the  balance,  or  a  large  part  be  in  the  Treasury,  a 
little  earning  can  legally  pay  quite  a  dividend  upon 
$100,000,  and  if  say,  |2,000  is  only  earned  and  paid 
on  110,000  it  looks  like  old  bonanza  days;  but  it 
would  not  be  two  per  cent,  upon  the  entire  capitiliza- 
tion.  Thus  the  "Financier"  advertises  that  his  com- 
pany is  a  dividend-payer  and  no  more  stock  is  to  be 


ROCKS  IN   THE  ROAD   TO  FORTUNE      157 

sold  in  that  particular  corporation;  perhaps  he  does 
not  want  the  world  to  know  how  the  dividends  are 
earned,  or  the  amount.  The  system  does  not  end 
here.  The  idea  is  conceived  that  perhaps  the  public 
will  reason,  that  if  a  man  has  made  a  big  success 
of  one  company  he  can  make  a  success  of  others, 
so  by  keeping  in  the  public  eye,  the  fact,  that  one 
great  success  has  been  made,  a  string  of  subsidiary 
organizations  are  promoted.  There  is  nothing  wrong 
in  this,  providing  the  intent  is  honest,  and  the  basis 
of  the  first  corporation,  which  acts  as  the  Bell- 
wether is  sound,  the  dividends  fairly  won  from  legi- 
timate ore  extraction,  for  if  one  success  follow^s  a 
man's  judgment,  the  world  owes  him  the  credit, 
and  gives  him  the  right  to  assume  that  other  suc- 
cesses will  follow;  but  if  the  intent  is  to  convey  one 
idea  that  is  not  true,  then  a  question  arises.  It  is 
the  language  of  the  second  Company  that  follows 
the  flotation  of  the  first  organization  that  creates 
the  doubt  in  the  mind  of  the  commercial  miner,  such 
for  instance  as  the  following: 

"We  have  another  big  winner.  We  regret  you 
did  not  buy  into  our  first  dividend  payer,  but  it  is 
too  late  for  that,  unless  you  can  buy  stock  from  some 
fortunate  holder  who  was  wiser  than  you.  But  you 
can  get  into  this  new  one  on  the  low  basis  of  ten 
cents  a  share."  If  the  capitalization  of  the  new  one 
is  15,000,000  of  |1  par,  the  investor  is  paying  at  the 
rate  of  five  hundred  thousand  dollars. 

And  so  it  goes,  through  the  press  or  by  circulars, 


158       ROCKS  IN   THE  ROAD   TO  FORTUNE 

reaching  the  homes  of  people  who  perhaps  never 
heard  of  the  first  dividend  payer,  but  who  are  in- 
fluenced by  what  they  read.  Generally  it  is  kept 
prominently  in  the  public  eye  that  the  first  company 
is  paying  steady  monthly  dividends,  but  if  there  has 
ever  been  one  of  those  corporations,  that  states 
plainly,  each  month,  the  amount  of  their  dividends, 
or  the  source  from  which  they  were  derived,  I  have 
never  had  the  pleasure  of  seeing  the  advertisement. 
Perhaps  in  this  manner  they  succeed  in  floating 
several  companies  that  may  never  pay;  perhaps  they 
may  make  the  second  flotation  pay  a  small  dividend, 
but  their  great  "clean  up"  perhaps  may  come  from 
the  general  sale  of  stocks  in  their  corporations  for 
which  they  do  not  make  any  promises,  thus  evading 
the  law. 

The  mining  world  welcomes  the  entry  of  a  divi- 
dend payer  into  the  list,  that  is  held  up  with  so  much 
pride,  providing  it  is  a  legitimate  earner,  no  ambigu- 
ous language  about  the  amount  paid  or  the  number 
of  stockholders  it  was  paid  to.  Notice  of  this  kind 
need  not  however,  be  made  after  the  promotion 
period  has  passed  and  the  mine  settled  down  as  a 
steady  producer.  Then  the  declaring  of  dividends 
is  expected  as  a  matter  of  course. 

We  do  not  assert  that  is  is  not  possible  for  these 
propositions  to  become  dividend  payers,  but  while 
the  appeals  go  out  to  the  public  for  money  to  make 
them  such,  the  facts  should  be  told.  We  do,  however, 
assert  plainly,  and  without  qualification,  that  we 


ROCKS  IN  THE  ROAD   TO  FORTUNE      159 

have  never  seen  a  steady  dividend  producer  that  has 
resulted  from  this  system  of  flotation. 

It  is  reasoned,  by  the  conservative  element,  that 
it  is  better  not  to  pay  a  dividend  if  the  payment  is 
to  be  suspended  after  a  few  months,  thus  conveying 
the  impression  that  the  dividend  period  of  the  min- 
ing industry  is  uncertain.  For  that  reason  the  sys- 
tem is  stamped  unsound  and  not  beneficial  to  min- 
ing. If  a  crash  comes  in  a  dividend  paying  stock, 
the  entire  Western  country  is  affected.  The  in- 
fluence does  not  stop  with  those  who  have  lost 
their  money,  but  every  industrial  promoter  seeking 
money  in  his  respective  line  takes  occasion  to 
revamp  and  enlarge  upon  the  more  recent  failures 
in  the  mining  world.  Then  there  is  a  further 
detriment  in  the  fact,  that  generally  those  vrho, 
from  their  inexperience  with  the  world's  affairs, 
believe  all  that  is  said,  suffer  and  are  of  a  class  that 
cannot  afford  to  take  a  loss.  It  is  only  natural  that 
they  should  denounce,  with  great  bitterness,  every- 
thing pertaining  to  the  avenue  in  which  they  made 
such  a  distinct  mistake. 

We  will  take  a  pointed  illustration.  If  the  reader, 
after  having  worked  hard,  at  the  end  of  a  life  of 
sixty  years,  had  made  a  small  saving  and  that  came 
to  him  which  comes  to  every  man,  and  his  wife 
and  mother  were  left  alone,  with  nothing  to  protect 
them  in  the  future  against  want,  except  say  the 
savings  of  $20,000,  which  you,  in  your  wisdom,  had 
placed  in  bonds,  reasonably  safe,  but  only  bearing 
four  per  cent,  per  annum,  which  would  give  them 


160       ROCKS  IN   THE  ROAD   TO  FORTUNE 

an  annuity  of  |800,  ample  for  them  to  live  modestly, 
though  with  perhaps  not  many  luxuries,  but  at  least 
not  want  or  feel  the  pinch  of  privation.  But  in  the 
event  of  sickness  overtaking  them,  heavy  doctors' 
bills  threatened  cuts  into  the  principal,  and  they 
had  that  fear  in  the  heart,  that  is  in  the  heart  of 
the  writer,  and  every  man  who  has  a  knowledge  of 
what  may  happen  by  the  turn  of  the  wheel  as  life 
goes  round,  and  they  begin  to  think,  how  can  they 
protect  themselves,  how  can  they  retrieve  the  loss 
made  by  the  misfortune  that  has  overtaken  them? 

Then  at  this  period,  if  by  chance  that  seems  to  be 
the  forerunner  of  fate,  those  you  left  and  made  ef- 
forts to  protect,  received  one  of  these  sensational 
circulars,  wherein  great  profits  were  promised,  one 
of  the  kind  where  it  says:  "It  is  believed  that  we 
will  make  $100,000  a  month,"  or  that  "We  are  pay- 
ing dividends  of  one  per  cent,  or  two  per  cent,  a 
month,"  and  proceed  to  cite  historical  evidence  of 
the  millions  won  from  nature,  or  one  of  these  great 
"believe"  advertisements,  such  as  are  presented  to 
the  inexperienced. 

Perhaps  it  will  be  reasoned  that  the  writer  ex- 
aggerated, that  no  man  would  be  so  foolish  as  to 
make  such  promises,  but  they  do,  and  that  publicly. 

On  the  morning  of  February  1st  of  the  present 
year,  the  writer  clipped  from  the  New  York  "World" 
the  following  item,  which  was  a  part  of  the  annual 
report  of  the  President  to  the  stockholders  in  a  non- 
commercial mine.    It  read  as  follows :     , 


ROCKS  IN   THE  ROAD   TO  FORTUNE      161 

"We  should  be  able  to  make  a  profit  of  at  least 
$400,000  a  month,  or  |5,000,000  a  year,  or  over  fifty 
per  cent,  on  the  par  value  of  the  stock  issued." 

According  to  this  report  there  had  been  |10,000,- 
000  of  this  stock  issued,  and  the  mine  had  not  got 
beyond  the  point  of  "We  should  be  able;"  it  had  not 
arrived  at  the  point  of  saying  "We  are  earning,"  but 
"We  should  be  earning" — a  very  wide  latitude. 

Suppose  this  circular,  or  one  of  a  similar  nature 
more  especially  referring  to  the  fact  that  they  were 
paying  dividends,  fell  into  the  hands  of  those  you 
had  left,  only  protected  by  the  sum  of  $20,000,  and 
your  wife  and  mother  reasoned  they  could  increase 
their  income  from  $800  per  year  to  even  $1,600  per 
year,  that  by  so  doing  it  would  give  tbem  added 
luxuries,  more  comforts,  enable  them  to  perhaps 
employ  another  servant,  that  your  mother  might  be 
saved  the  labor  of  house  drudgery,  and  acting  upon 
that  impulse  and  desire  to  better  their  condition, 
they  believing  in  the  sincerity  and  truth  of  the 
people  making  these  representations,  did  take  those 
bonds  and  sell  them  for  $20,000,  and  put  $10,000 
of  it  into  this  class  of  stock,  and  received  their  first 
dividend,  and  also  received  circulars  urging  them 
to  get  more  money  to  put  into  this  gilt  edge  security, 
such  as  is  done  time  and  again,  and  finding  that  they 
had  received  a  dividend,  their  remaining  caution 
was  swept  away,  and  they  invested  their  last  $10,000 
and  that  after  two  or  three  little  dividends.  The 
result    that    usually    follows    unsound    promotions 


162  ROCKS  IN  THE  ROAD  TO  FORTUNE 

faced  your  family,  and  they  were  brought  to  that 
point  that  you  had  so  longed  to  keep  them  from,  the 
point  of  necessity  and  want,  and  they  became  an  ob- 
ject of  public  charity,  perhaps  to  find  their  way  to 
the  Alms  House  or  forced  into  menial  servitude;  if 
it  were  possible  for  the  dead  to  return,  what  would 
you  try  to  do  to  the  men  responsible  for  that  legal 
crime? 

That  picture  is  not  overdrawn.  The  writer  wit- 
nessed one  similar  to  it  some  years  ago.  I  was  in- 
troduced to  a  family  that  had  formerly  been  in  afflu- 
ence, but  were  then  working  in  the  Government 
Printing  Office.  This  lady  asked  permission  to  see 
me  and  she  told  me  a  story  that  is  really  the  basis 
of  the  illustration  presented  here. 

Attribute  it  to  my  curiosity,  or  inquisitiveness  as 
you  may,  whenever  I  see  anything  pertaining  to  the 
mine  promotion  that  looks  strange,  I  want  to  know 
the  reason,  on  the  grounds  that  there  is  said  to  be 
good  godly  reasons  for  the  existence  of  poisonous 
plants  and  deadly  serpents.  In  the  month  of  Jan- 
nary  of  the  present  year,  I  noticed  a  clipping  in  one 
of  the  Western  dailies,  it  read  as  follows:  "The 
Homestake  Mine  has  declared  a  dividend  of  fifty 
cents  per  share,  payable  on  such  a  date."  Just  a 
small  headline.  The  Homestake  is  a  great  dividend 
paying  mine,  one  of  the  many  properties,  that  sus- 
tains the  credit  of  the  mining  industry,  a  mine  which 
has  continuously  paid  dividends  for  nearly  a  genera- 
tion, with  the  exception  of  last  year,  when  a  fire 


ROCKS  IN  THE  ROAD  TO  FORTUNE      163 

destroyed  some  of  the  workings  and  the  dividend 
was  passed  one  or  two  times.  It  was  evident  that 
there  was  nothing  extraordinary  in  the  payment  of 
fifty  cents  per  share,  I  have  never  seen  any  display 
advertisements  of  the  fact  that  this  mine,  or  any 
of  the  other  great  mines  of  the  United  States  were 
paying,  or  had  paid,  consequently  my  curiosity  was 
aroused  at  what  I  had  seen  in  another  paper,  being 
pricked  by  the  knowledge  that  in  mines  operated 
commercially,  the  payment  of  a  dividend  creates  no 
excitement,  no  blare  of  newspaper  trumpets;  the 
notice  of  the  dividend  is  taken  as  a  matter  of  course. 
It  is  expected  this  month,  next  month,  and  for  many 
months  to  follow,  as  it  had  been  paid  many  months 
continuously  in  the  past.  It  causes  no  more  com- 
ment than  the  payment  of  a  railroad  or  bank  divi- 
dend. 

The  fact  that  nature  had  given  up  more  of  her 
treasures,  did  not  call  for  the  expenditure  of  a  large 
sum  of  money  in  the  public  press,  calling  attention 
to  the  fact  that  a  dividend  had  been  paid,  that 
there  was  another  property  owned  by  the  same 
people,  which  would  probably  go  on  a  dividend  pay- 
ing basis  next  month,  and  the  public  urged  to  buy 
into  the  second  on  the  evidence  of  the  first.  Never 
in  the  writer's  experience  has  he  witnessed  the  no- 
tice of  a  mining  dividend,  paid  by  a  commercial  mine, 
extolled  in  a  full  page  advertisement,  reproducing 
one  of  its  dividend  checks  made  out  to  the  order  of 
some  stockholder,  with  the  words  "Did  you  get  one 


164  ROCKS  IN   THE  ROAD   TO  FORTUNE 

of  these?  if  not,  it  was  your  own  fault.  Buy  in  with 
us  on  the  new  deal,"  or  "if  you  did  not  get  one  of 
these  last  month,  buy  some  stock  and  get  one  next 
month ;"  or  other  language  intended  to  excite  invest- 
ment. 

Every  man  has  the  right  to  his  opinion.  It  is  not 
asserted  that  it  is  not  possible  for  the  promoters 
of  mines  really  worth  millions  of  dollars,  by  some 
strange  desire  of  their  own,  to  thus  express  their 
personal  opinions,  by  telling  the  world  at  great  ex- 
pense, that  their  mine  is  paying  dividends.  We  are 
always  glad  to  know  that  men  are  fortunate,  it  en- 
courages others;  it  may  be  a  matter  of  pride  with 
them,  they  have  the  right  to  cover  four  pages  in  mak- 
ing that  statement  if  they  can  afford  it.  What  seems 
strange  is  the  reproduction  of  a  dividend  check,  if  it 
is  simply  the  payment  of  a  regularly  won  profit, 
from  ore  bodies  giving  evidence  of  continuing  to 
great  depth,  why  the  necessity  of  this  display,  is  it 
not  usual  in  the  conduct  of  affairs  in  commercial 
mines?  it  rather  savors,  of  "something*'  to  follow, 
if  there  is  no  mercenary  motive,  no  more  stock  to 
sell — and  what  sound  reason  can  there  be  for  selling 
treasury  shares  in  a  dividend  paying  mine, — or  no 
personal  attempt  to  promote  some  other  company, 
of  what  benefit  is  it  to  the  mine,  could  not  the  money 
thus  expended,  be  used  to  better  advantage?  On 
the  3rd  of  February  of  the  present  year  the  following 
dividend  notice  was  published  in  the  New  York 
Herald.    It  is  reproduced  to  show  just  how  the  an- 


ROCKS  IN  THE  ROAD   TO  FORTUNE      165 

nouncement  of  a  commercially  earned  mining  divi- 
dend is  made: 

"The  Board  of  Directors  has  this  day  declared  a 
quarterly  dividend  of  two  per  cent,  on  the  capital 
stock  of  this  company,  payable  on  the  27th  day  of 
February,  1908,  to  stock  holders  of  record  on  the 
books  of  the  company  at  the  close  of  business  on 
Monday,  February  17th,  1908." 

There  is  nothing  of  a  display  nature  in  this,  no 
ambiguous  wording;  it  plainly  says:  "To  all  stock- 
holders of  record,  two  per  cent,  will  be  paid  upon 
the  capital  stock;"  not  a  word  about  the  greatness 
of  the  men  who  earned  this  dividend,  nothing  about: 
"Buy  some  shares  in  the  next  big  winner,"  just  a 
plain  regular  announcement  of  an  honestly  won 
dividend. 

It  may  be  that  the  display  of  evidence,  that  a 
dividend  has  been  paid  is  regular,  the  assertion 
made  is  that  it  is  strange.  A  review  of  the  ultimate 
results  of  such  flotations,  however,  leads  the  writer 
to  question  the  soundness  of  the  intent,  and  the 
benefit  that  will  accrue  to  the  general  industry. 
Go  back  ten  years  and  study  all  of  the  publicity  pro- 
motions that  have  paid,  promised  to  pay  or  which 
guaranteed  to  pay,  and  study  the  result.  It  is  a  long 
list  of  abuses,  of  betrayed  confidences,  the  payment 
of  a  few  unhealthy  dividends  upon  limited  amounts 
of  the  shares,  that  additional  shares  may  be  sold, 
the  selling  of  shares  by  the  grossest  forms  of  mis- 
representations, as  to  ore  in  sight  or  pledges  to  pay 


166       ROCKS  IN  THE  ROAD   TO  FORTUNE 

profits  at  a  fixed  time,  the  issuances  of  guaranteed 
bonds,  by  a  guarantee  company,  which  means 
scarcely  anything  of  a  sound  profit  earning  nature, 
and  other  devices  used  to  convey  the  impression  that 
the  investment  was  sound.  When  the  crash  comes, 
it  is  found  that  the  plans  were  laid,  in  some  cases 
crudely,  in  others  legally  protected  by  the  attorney 
who  makes  a  study  of  the  evasion  of  the  laws  a 
practice.  It  will  be  seen  that  in  paying  to  a  few, 
or  from  channel  other  than  legitimate  ore  extraction, 
they  are  immune  from  legal  action. 

The  writer  buys  and  sells  prospects,  mines  and 
mills,  also  develops  them.  Often  he  is  obliged  to  ask 
the  aid  of  capital,  as  do  thousands  of  other  men,  who 
follow  the  commercial  side  of  mining.  Few  men 
have  ample  personal  funds  to  carry  more  than  one 
enterprise,  those  that  are  extended  must  seek  aid. 
What  is  the  incentive  we  offer  to  capital  to  join  us 
in  the  risk?  It  is,  that  we  hope  to  pay  large  and 
handsome  dividends. 

The  man  who  enters  the  field  of  competition  and 
asks  money  upon  the  assertion  that  "We  will  pay 
dividends  next  month,"  or  "We  have  been  paying 
them,  and  will  continue  paying,"  and  we  can  sell 
our  shares  at  ten  cents  each.  While  our  competitor 
sells  his  prospect  non-dividend  shares  at  twenty- 
five  cents  has  so  great  an  advantage,  the  con- 
servative miner  with  his  plain  statement  of  facts 
is  completely  driven  from  the  field.  If  the  truth 
were  being  told  there  would  be  no  complaint,  but  the 
truth,  in  nearly  every  one  of  these  cases,  has  been 


ROCKS  IN   THE  ROAD   TO  FORTUNE      167 

distorted.  If  the  investor  finds  by  experience,  that 
the  dividend  period  has  been  used  by  men  to  de- 
ceive, what  confidence  can  they  place  in  the  mines 
that  are  paying  them  soundly?  How  can  the  small 
merchant  in  the  South  or  East  draw  the  distinction 
between  the  sound  and  the  unsound? 

There  is  another  side,  one  that  seldom  comes  in 
the  lime  light,  a  sad  side.  A  miner  while  prospect- 
ing is  not  often  overburdened  with  cash;  his  capital 
is  hope,  energy  and  a  little  credit  at  the  local  store; 
a  small  cabin  gives  him  his  shelter.  He  may 
be  a  good  judge  of  the  cardinal  principles  that  go 
to  make  mines,  and  the  selection  of  prospects  from 
which  considerable  of  the  risks  are  eliminated.  His 
wife  and  children  often  share  the  hardships  and 
hopes,  and  some  of  them  are  deserving  of  all  that 
the  wheel  of  fortune  can  turn  their  way.  He  finds 
a  good  prospect,  develops  it  as  far  as  his  means  will 
admit,  then  incorporates  a  little  company,  leaving 
the  family  buoyed  up  with  hope.  He  goes  East, 
presents  his  plain  statement  of  facts  and  offers  his 
development  shares  at  a  reasonable  valuation  that 
he  may  continue  his  work — and  he  is  met  with  the 
remark:  "are  you  paying  dividends?" 

"No  I  am  not  deep  enough;  I  have  some  commer- 
cial ore,  but  the  prospect  is  only  a  few  feet  deep  and 
I  need  this  money  to  continue,  that  the  size  of  the 
shoot  may  be  determined." 

What  sense  Mr.  Miner  is  there  in  my  paying  you 
twenty-five  per  cent,  for  your  shares  that  are  based 


168       ROCKS  IN   THE  ROAD   TO  FORTUNE 

only  upon  a  prospect,  when  I  can  buy  shares  at  ten 
per  cent,  in  a  mine  that  is  paying  dividends  now? 

The  miner  tries  to  explain,  but  he  can  not  teach 
the  investor  in  a  few  moments.  All  the  buyer  sees 
is  the  fact  that  one  is  a  prospect,  and  the  other 
claims  to  be  a  mine.  The  miner  says:  "How  do  you 
know  that  they  are  earning  the  dividend?" 

"How  should  I  know?  They  say  they  are  earning 
it,  and  besides  I  know  a  man  that  bought  the  stock 
last  month,  and  he  received  his  dividend  check  last 
week,  he  brought  it  over  here  and  showed  it  to  me, 
and  gave  me  the  address  of  the  Company,  so  I  could 
write  to  them  and  buy  a  few  shares  before  the  price 
goes  up;  I  am  going  to  put  my  money  where  it  will 
earn  now,  not  into  a  prospect,  that  may  never  earn, 
besides  the  literature  of  this  company  gives  me  the 
names  of  men,  highly  esteemed,  who  are  its  direc- 
tors, and  they  figure  that  next  year  we  will  receive 
100  per  cent,  upon  our  money." 

The  miner  finally  realizes  that  there  is  nothing 
to  be  gained  by  an  argument  of  reason,  so  he  traces 
out  another  investor,  and  he  asks  him  the  same 
question  about  dividends,  or  says  when  can  you 
guarantee  dividends?  The  miner  knows  that  if  he 
speaks  honestly,  he  can  not  set  a  time  with  any 
certainty,  and  tries  to  explain.  The  investor  picks 
up  a  daily  paper  and  reads  the  following  headlines 
in  bold  type: 

"We  are  going  to  pay  dividends  next  month,  buy 
before  the  first  one  is  paid  and  double  your  money." 


ROCKS  IN  THE  ROAD   TO  FORTUNE       169 

He  turns  to  the  miner  and  says:  "Why  should  I 
put  my  money  in  with  a  man  who  has  no  idea  as  to 
when  he  will  pay  a  dividend,  when  this  stock  is 
ready  at  hand,  which  will  pay  a  dividend  next 
month.  No,  thank  you,  Mr.  Miner;  good  day,  come 
around  when  you  have  a  mine,  not  a  hole  in  the 
ground.  You  can  say  you  have  a  good  chance;  I 
am  not  taking  chances.    Good  day." 

How  many  good,  square  honest  men  have  faced 
this,  day  by  day,  their  slender  stores  of  cash  getting 
lower  and  lower,  their  letters  home  filled  with  as 
much  encouragement  as  is  possible,  they  wait,  they 
search,  while  out  in  the  little  mining  camp  there 
are  others  waiting  anxiously,  watching  the  mails, 
living  on  hope,  existing  on  what  the  morrow  may 
bring.  Those  who  have  never  felt  the  anguish  of 
waiting  and  watching  cannot  realise  what  it  means. 
I  have  drained  deep  the  contents  of  that  cup.  I 
know  that  man's  emotions — beaten,  discouraged. 
1  know  how  that  family  feels  when  he  returns  home, 
bringing  disappointment.  The  author  has  no  hidden 
motive  in  writing  this  book,  he  has  made  no  personal 
attack,  but  if  he  can  aid  a  little  in  making  the 
miner's  walk  to  the  door  of  capital  more  pleasant, 
by  opening  the  eyes  of  capital  to  the  true  worth  of 
the  legitimate  miner,  he  will  feel  repaid. 

There  are  two  cardinal  reasons  why  the  payment 
of  dividends  is  of  much  importance  to  the  general 
industry  and  should  be  plainly  announced.  First 
that  the  world  may  know  that  there  has  been  a  new 
profit  earner  added  to  the  now  long  string  of  pro- 


170       ROCKS  IN  THE  ROAD  TO  FORTUNE 

ducers,  that  the  prospect  stage  has  again  been  passed 
thus  justifying  man's  belief  in  nature,  and  giving 
more  encouragement  to  other  prospectors,  also  those 
that  follow  him  with  their  capital.  If  the  dividend 
paid  is  not  a  sound  one,  and  the  property  has  been 
widely  heralded  as  a  producer,  thus  attracting  the 
eye  of  the  world,  and  those  ever  ready  to  decry  min- 
ing, if  the  property  earns  but  one  or  two  dividends, 
then  dies  out,  with  the  attendant  disgraceful 
charges  and  counter  charges,  made  by  promoter  and 
share-holder  it  would  be  better  that  the  dividend 
period  had  never  been  assumed.  It  is  therefore, 
asserted,  that  where  a  man,  in  his  ignorance  of  the 
mine  necessities,  the  time  and  development  neces- 
sary to  open  ore  bodies,  the  careful  calculations  on 
future  product,  that  continuous  dividends  may  be 
won,  commences  to  pay  dividends,  upon  an  unsound 
system  of  actual  reserves,  the  commercial  miner  has 
a  right  to  question  the  wisdom  of  passing  the  divi- 
dend period,  simply  for  the  purpose  of  accelerating 
the  sale  of  shares,  does  not  the  entire  industry  suffer, 
when  the  highest  dignity,  to  which  the  mine  aspires, 
is  shown  by  failure  to  be  questionable,  as  to  per- 
manency of  profit  division. 

Second,  as  the  reputation  of  the  commercial  mines 
is  based  upon  the  splendid  profits  won  from  paying 
mines,  and  as  each  new  sound  producer  is  added  to 
the  list  it  creates  more  reputation  and  attracts  more 
capital.  As  the  earth  gives  the  profits,  should  the 
earth  and  the  industry  not  be  entitled  to  every  ves- 


ROCKS  IN   THE  ROAD   TO  FORTUNE      171 

tige  of  honor  to  be  derived  from  the  possession  of 
a  new  dividend  payer?  Therefore,  have  we  not  the 
right  to  know  the  size  of  the  dividend  paid,  the  mine 
from  which  it  was  won,  and  the  district  in  which  the 
mine  is  located,  that  other  miners  may  point  with 
pride  and  personal  anticipation  to  the  new  profit 
earner?  Mark  you,  I  say  if  it  is  an  honestly  won 
dividend  from  ore.  Not  some  system  of  passing 
the  profits  from  teaming,  w^ater  powers,  old 
machinery,  timber,  profits  from  commissions,  etc. 
But  a  mining  profit.  If  people  want  to  invest  in 
farms  or  brick  buildings,  that  is  a  separate  line.  I 
assert  that  mining,  is  mining  ore,  not  speculating  in 
shares,  trading  in  horses,  building  lots  or  any  form 
of  mercantile  pursuits. 

The  unsound  dividend  question  is  a  serious  one; 
the  public  naturally  say:  "The  highest  dignity  of  the 
mining  industry — the  dividend — is  based  upon  fraud 
and  uncertainty."  We  were  told  that  when  a  mine 
passed  to  a  paying  basis,  practically  all  speculation 
ceased,  and  that  thereafter  it  was  one  continuous 
stream  of  profits,  giving  us  a  higher  rate  of  interest 
than  we  could  obtain  in  any  other  line  of  investment, 
and  that  the  object  of  every  commercial  miner  was 
to  put  his  property  on  a  dividend  basis,  yet  here  we 
have  invested  our  money  into  what  is  known  as  a 
dividend  stock,  have  received  two  or  three  payments, 
and  in  the  end  our  loss  has  been  complete,  just  the 
same  as  when  we  bought  into  a  prospect,  under  the 
belief  that  it  was  a  mine.  How  are  we  to  draw  the 
distinction? 


172       ROCKS  IN   THE  ROAD   TO  FORTUNE 

Thus  the  unsound  promotion  has  invaded  the  most 
sacred  temple  of  mining.  They  have  found  lawyers 
who  have  reasoned  it  out,  that  it  is  not  criminal  to 
pay  dividends  under  the  system  they  follow,  the 
primary  requisite  being,  not  to  be  too  explicit  in  the 
advertisement. 

Perhaps  it  may  occur  to  the  large  publications  to 
insist,  that  in  all  the  advertisements  referring  to 
dividends,  that  the  actual  total  cash  amount,  and 
how  it  was  made,  be  set  forth,  specifying  also  the 
amount  of  ore  reserves  exposed. 


CHAPTER  XVI. 

ENORMOUS  COMMISSIONS  CHARGED  BY  PRO- 
MOTERS.    METHODS  EMPLOYED  TO 
EXCITE  THE  INVESTOR. 

The  remark  has  been  made  that  I  am  too  radi- 
cal, that  the  investing  public  are  quick  to  run — 
that  the  writer  is  sowing  a  lot  of  trouble  for  him- 
self. I  am  not  yet  fifty  years  of  age;  my  desire  is 
to  remain  a  miner;  every  dollar  myself  or  my 
family  possess  is  invested  in  mines,  mills,  smelters 
and  prospects.  The  firm  that  I  represent  have,  in 
actual  hard  cash,  over  |3,000,000  invested  in  mines, 
mills  and  prospects.  The  writer  works  night  and 
day  endeavoring  to  interest  capital  in  the  ventures. 
In  some  of  the  larger  ones,  which  are  of  a  purely 
development  nature,  considerable  money  is  repre- 
sented; in  one  over  |700,000  has  been  expended 
without  one  dollar  of  profit  return  as  yet;  in  others 
from  1100,000  to  |400,000  have  been  invested.  All 
are  in  process  of  search  for  ore  in  commerciail 
bodies.  Unless  we  do  interest  others,  the  reader 
will  realize  that  this  load  will  be  very  heavy. 

After  reading  "Rocks  in  the  Road,"  is  it  not  recog- 
nized that  when  I  endeavor  to  interest  the  ener- 
gies and  capital  of  men  by  the  order  of  enlighten- 

173 


174  ROCKS  IN  THE  ROAD  TO  FORTUNE 

ment  herein  broadly  attempted,  will  I  not  be  asked 
the  same  crucial  questions?  Who  stands  in  more 
danger  than  the  author,  if,  I,  myself,  practice  that 
which  I  say  is  unsound?  The  writer  knows  what  he 
faces. 

I  only  ask  the  inexperienced  investor  to  investi- 
gate the  claims   made  by  promoters,   and  not  to 
condemn  general  mining  when  they  experience  dis- 
appointments that  are  not  caused  by  mining.  Many 
of  the  evils  I  refer  to  have  been  touched  upon  by 
the   Mining   Record,   Profit   and   Loss,   Mining   In- 
vestor,   Mining    World,    Engineering    and    Mining 
Journal  and  the  Mining  and   Scientific  Press,  all 
edited  by  able  journalists.    As  to  their  practical  ex- 
perience in  mines,  they  may  themselves  speak.     I 
only  know  them  by  their  splendid  literary  achieve- 
ments.    The  writer  says  that  practical  experience, 
underground,  overground,  through  financial  opera- 
tions in  the  East  and  West,  also  an  all  round  knowl- 
edge of  mines  and  men,  is  essential  to  enable  one 
to  know  both  the  light  and  dark  side  of  the  in- 
dustry.    These   papers   make   effort   in   their  edi- 
torials to  warn  the  investor,  but,  as  has  been  stated 
in  the  chapter  on  "Worthlessness  of  Local  Endorse- 
ments," their  pages  are  also  filled  with  excitable 
news  from  the  mines,  for  which  they  are  not  in- 
dividually responsible,  they  accepting  it  as  matters 
of  public  interest,  each  issue,  however,  of  some  of 
them   being   filled   with   notices   of  prospects,   ad- 
vertised upon  the  assumption  that  they  are  mines; 
consequently  the  weight  and  wisdom  of  their  logic 


ROCKS  IN  THE  ROAD   TO  FORTUNE      176 

is  lost  in  the  maze  of  matter  that  confronts  the 
reader.  It  is  admitted  that  their  reasoning  is 
sound,  but  the  effect  would  be  more  lasting  if  the 
logic  and  advice  were  by  itself,  and  not  alongside  of 
some  announcement  that  a  mine  was  paying  divi- 
dens,  yet  still  selling  treasury  stock.  It  is  like  one 
sound  apple  in  a  basket  of  unsound  ones,  similar  in 
effect  to  informing  a  child  that  red-colored  candy  is 
injurious,  yet  at  the  same  time  placing  the  sweet 
within  its  reach. 

"Rocks  in  the  Road"  has  been  written  without 
individual  reference  to  man  or  mine,  promoting  or 
not  under  promotion.  It  has  been  published  in  its 
form  with  a  deep  set  purpose;  the  writer  desires 
that  it  be  kept  ready  at  hand  for  reference,  papers 
containing  the  ablest  editorials  are  read  and 
thrown  aside,  mining  booms  come  and  go,  there  is 
a  lull  in  the  sale  of  shares;  then  it  flashes  out  with 
the  discovery  of  some  new  bonanza,  books  are  kept 
for  centuries;  it  is  the  hope  that  "Rocks  in  the  Road 
to  Fortune"  will  also  be,  for  a  while,  kept  for  fu- 
ture reference. 

If  any  man  should  say  it  is  unwise  to  pick  at 
this  sore,  thus  aggravating  the  evil,  my  reply  is, 
that  if  some  man  does  not  attempt  to  eradicate  the 
causes  of  the  disease  the  sore  will  never  be  cured, 
and  soon  there  will  be  no  industry  upon  which  the 
sore  can  find  a  place.  For  thirty  years,  like  a  can- 
cerous growth,  the  unsound  system  has  clung  to 
the  industry.  It  is  about  time  some  remedy  was 
at  least  attempted. 


176  ROCKS  IN  THE  ROAD   TO  FORTUNE 

The  excessive  commissions  charged  by  promoters 
is  one  of  the  most  deadly  germs  of  the  disease  that 
we  are  forced  to  combat.  The  investor  in  his  own 
interest  should  help  in  the  fight  for  healthier  blood 
in  the  arteries  of  mining,  and  in  assisting  us  he  will 
be  saving  himself.  The  writer  feels  reasonably  well 
equipped  by  experience  to  treat  this  commission 
evil.  Many  of  those  who  are  responsible  for  it  are 
my  personal  acquaintances.  To  some  I  have  sold 
prospects,  made  my  usual  argument  against  the 
high  commission,  was  always  overruled,  and  the 
commission  contract  executed.  One  aptly  said, 
"What  business  is  it  of  yours?  We  pay  you  for  the 
property;  there  your  interest  ends."  But  it  does 
not  kill  the  argument  that  the  excessive  commission 
almost  invariably  annihilates  the  chances  of  the 
prospect.     I  ask  for  any  evidence  to  the  contrary. 

The  promoter,  from  his  standpoint  of  personal 
interest,  is  within  his  business  rights.  There  is, 
however,  another  side  of  the  case.  It  is  not  one 
prospect  that  has  to  be  sold  to  make  the  industry 
more  prosperous,  but  many  must  be  opened.  This 
individual  case — as  to  the  general  run — places  the 
prospect  before  the  people  at  inflated  figures,  and 
then  extracts  from  forty  to  fifty  per  cent  of  the  cash 
received,  a  practice  that  is  not  conducive  of  ulti- 
mate success,  and  the  resulting  disappointments 
narrow  down  the  circle  of  men  and  women  who  do 
buy,  being  desirous  of  making  money  through 
mines,  thus  each  year,  by  repeated  failures,  the 
circle  becomes  smaller.    I  may  sell  to  the  promoter 


ROCKS  IN  THE  ROAD   TO  FORTUNE      177 

and  get  my  price,  but  there  may  come  a  time  when 
I  will  have  to  go  to  the  people;  then  will  be  felt  the 
results  of  the  pernicious  system. 

The  argument  that  forty  to  fifty  per  cent  is  not 
excessive  is  answered  negatively  by  the  raw,  cold 
resume  of  the  results  of  these  promotions,  not  one 
in  a  thousand  of  which  ever  opened  into  sweet  blos- 
som as  circulators  of  wealth  profitably  won  from  the 
earth;  besides,  every  miner  and  shareholder  in  a 
mine  or  prospect  is  affected.  For  the  promoter  does 
not  boldly  say,  ''my  commission  is  forty  or  fifty  per 
cent";  that  vital  weakness  is  hidden,  and  the  in- 
vestor believes  that  nearly  all  of  his  money  goes 
into  the  prospect.  When  failure  follows,  the  circle 
is  drawn  down  finer  and  it  becomes  more  difficult 
to  interest  capital,  because  the  industry  generally 
is  blamed  for  the  acts  of  a  few.  Can  anyone  con- 
vince a  sane  man  that  his  investment  is  safe  where 
the  broker  tears  off  forty  or  fifty  per  cent  from 
every  dollar  that  comes  into  his  possession?  Can 
any  reasonable  man  expect  even  the  great  mining 
industry  to  win  success  from  prospects  burdened 
down  all  through  their  industrial  life  by  a  load  of 
fifty  per  cent,  for  which  it  received  no  benefit? 

If  a  capitalist  desired  to  buy  a  |1,000  bond  which 
the  broker  advertised  was  sound  and  paid  six  per 
cent.  When  the  money  passed  over  the  counter,  if 
the  broker  took  $100  the  investor  would  look  upon 
the  transaction  with  amazement,  not  to  say  dis- 
trust, for  ten  per  cent  is  a  very  large  commission 
to  charge  upon  sound  securities.  But  bring  lit 
closer.     You,  after  hard  labor  in  all  kinds  of  incle- 


178  ROCKS  IN  THE  ROAD  TO  FORTUNE 

ment  weather,  had  managed  to  save  your  first  |1,000 
and  desired  to  invest  it  where  it  would  bring  yon 
in  a  handsome  interest,  and  perhaps  lay  the  corner- 
stone in  your  fortune.  With  the  knowledge  facing 
that  you  cannot  afford  to  lose,  yet  with  the  three 
per  cent  offered  by  savings  banks,  though  safe, 
there  is  nothing  but  thirty  dollars  per  annum  ahead 
for  you.  Consequently  you  read  in  the  great  dailies 
a  display  advertisement,  giving  a  glowing  de- 
scription of  a  mining  enterprise,  which  stated,  or 
intimated,  that  "money  invested  in  the  shares  was 
like  placing  money  in  a  government  bond,  excepting 
that  the  mine  will  pay  ten  times  the  amount  of  the 
bond,"  and  follow  it  up  with  a  long  string  of  ir- 
relevent  information  about  the  millions  that  other 
men  have  made,  and  ask  you  the  threadbare  ques- 
tion, "Do  you  want  to  be  a  mining  king?"  You 
have  had  no  experience  in  reading  between  the 
lines,  and  do  not  realize  that  there  is  no  statement 
of  fact  in  the  matter.  You  are  impressed.  You  do 
know  of  the  hundreds  of  millions  of  dollars  won 
each  year  from  the  earth,  so  you  reason. 

Your  $1,000  in  the  bank  is  worth  thirty  dollars  per 
year.  You  are  worth  just  |1,000.  The  promoter 
says  he  will  pay  thirty  per  cent,  or  three  hundred 
and  thirty-three  dollars  per  year,  or  interest  on 
110,000,  bank  rate,  or  making  you  worth  |10,090 
instead  of  |1,000.  You  write  for  information  and 
your  mail  grows  in  volume.  The  high-sounding 
names  in  the  directory  appeal  to  you.  Of  a  cer- 
tainty such  men  would  not  be  a  party  to  misrepre- 


ROCKS  IN  THE  ROAD   TO  FORTUNE      179 

sentation.     The  local  endorsement  also  impresses. 
Is  it  not  evidence  direct  from  the  mine? 

You  hesitate.  The  broker  knows  you  are  hesi- 
tating. One  morning  a  suave  fellows  calls  upon  you 
direct  from  the  promoter,  but  his  introduction  con- 
veys a  different  conception  of  the  reasons.  He  has 
taken  the  trouble  to  call;  he  shows  you  a  letter  ad- 
dressed to  himself  at  some  town  near  the  place  you 
reside  in.  It  says,  "Before  you  leave  that  section  it 
might  be  well  to  drop  in  on  John  Clarkson  at  Win- 
ingo.  He  has  been  writing  us,  and  as  the  stock  is 
going  fast,  you  can  give  him  some  inside  informa- 
tion that  may  cause  him  to  hasten  his  judgment. 
If  we  can  make  him  a  few  thousand  he  will  be  a 
good  reference  for  us  in  future  transactions.  We 
will  hold  10,000  shares  at  ten  cents  for  his  account 
until  you  see  him."  He  starts  his  conversation.  It 
generally  runs  on  in  the  usual  way:  "It  is  the 
greatest  mine  in  the  State."  Rockefeller  has  been 
buying  up  the  stock,  and  just  as  soon  as  the  Board 
meets  the  price  will  be  fifty  cents  per  share,"  and 
a  long  line  of  this  kind  of  unsubstantial  ramble. 
Finally  you  are  impressed,  draw  your  |1,000  and 
journey  to  the  city,  where  you  visit  the  broker.  As 
you  enter,  the  magnificent  surroundings  fairly  awe. 
There  are  several  up-to-date  stenographers,  busy 
with  their  machines;  clerks  passing  in  and  out.  The 
scene  is  impressing.  Finally,  the  nature  of  your 
business  being  made  known,  you  are  received  cordi- 
ally. Your  |1,000  is  an  open  sesame.  In  the  con- 
versation that  follows  it  is  made  plain  that  these 


180  ROCKS  IN   THE  ROAD   TO  FORTUNE 

august  gentlemen  are  doing  you  a  great  service. 
You  regret  that  you  have  so  little.  But  you  take 
your  savings  and  pass  it  over,  in  the  belief  that  all 
that  has  been  told  is  true,  that  there  is  no  doubt 
about  the  stability  of  the  enterprise  or  the  safety 
of  your  money. 

When  the  broker  received  your  $1,000  what  would 
be  your  ideas  of  the  stability  of  the  enterprise  if, 
in  front  of  your  eyes,  he  took  |400  of  your  $1,000 
and  put  it  into  his  pocket?  And  you,  in  your  in- 
nocence, should  say,  "What  is  that  $400  for,"  and  he 
blandly  say,  "Oh,  a  mere  trifle;  that  is  just  my  share 
of  this  transaction;  my  compensation  for  convinc- 
ing you  that  this  is  a  good  thing.  This  other  $600 
I  am  sending  to  the  office  of  the  mining  company 
as  their  share,  and  they  will  send  me  the  10,000 
shares  of  stock  which  you  bought  at  ten  cents  a 
share.  It  really  makes  no  difference;  you  get  your 
10,000  shares  just  the  same.  The  only  difference  is, 
that  while  you  are  waiting  for  the  profits  to  come 
from  the  mine,  which  are  sure  to  come,  we  don't 
wait.    We  take  ours  first." 

This  naturally  would  astonish  you.  But  if  you 
could  follow  the  $600  that  the  broker  sends  to  the 
mining  company's  office  and  there  witness  the  wel- 
come it  receives,  and  while  the  messenger  boy  is 
waiting  for  the  10,000  shares  of  stock  for  which  you 
paid  $1,000,  and  from  which  the  broker  has  already 
extracted  $400,  would  it  surprise  you  if  you  heard 
the  president  say: 

"You  might  as  well  make  out  Smith's  bonus  stock 


\ 


ROCKS  IN  THE  ROAD   TO  FORTUNE      181 

at  the  same  time  you  are  making  out  the  10,000 
shares  for  the  purchaser." 

And  there  should  be  delivered  to  that  boy  your 
10,000  shares  and  a  further  3,300  shares  for  the 
broker,  thus  giving  to  the  broker  your  $400  and  also 
in  addition  one-third  of  the  amount  of  stock  you 
hold,  and  for  which  you  paid  hard  cash,  and  for 
which  the  broker  or  promoter  paid  nothing. 

If  you  could  go  a  little  further  and  see  the  presi- 
dent take  the  $600  and  divide  it  up  as  follows:  $100 
for  salaries  of  officials  and  the  expenses  of  the 
eastern  office,  then  a  draft  for  $500,  drawn  to  the 
order  of  the  superintendent  and  mailed  to  the  mine. 
You  follow  that  draft;  you  see  its  arrival.  You 
notice  the  expensively  furnished  superintendent's 
office,  a  fine  span  of  horses  at  the  door,  more  type- 
writers, mailing  glowing  descriptions  about  the 
mine,  but  no  ore  being  shipped.  The  superintend- 
ent clips  off  $100  more  of  your  $1,000  for  outside 
expenses,  and  finally  passes  over  to  the  foreman  of 
the  mine  $400  and  says,  "Put  that  underground." 
Would  you  consider  that  $600  of  your  money  has 
really  been  invested  in  mining,  placed  underground 
in  an  effort  to  make  a  mine?  No,  the  $600  is  lost 
to  you.  It  is  lost  to  the  mine.  All  through  the  life 
of  that  enterprise  it  is  burdened  with  the  $600  that 
has  been  frittered  away,  ill  spent. 

Now  this  may  seem  rather  far  drawn,  but  it  is 
the  truth,  and  is  about  the  way  the  money  of  the 
eastern  investor  finds  its  way  into  commercial  min- 
ing.    Even  the  $400  is  not  well  spent,  because  in 


i  182  ROCKS  IN   THE  ROAD   TO   FORTUNE 
I 

the  mine  the  lax  system  that  follows  the  unsound 
principles  of  the  oflBce  always  prevails. 

I  have  stated  that  one  of  the  greatest  obstacles 
that  faces  the  future  success  of  commercial  mining 
is  the  unsound  promoter,  and  he  is  responsible  for 
the  high  commission  evil,  which  has  completely 
strangled  the  efforts  of  practical  men  who  seek  capi- 
tal upon  a  fair  statement  of  facts.  That  these  ex- 
cessive commissions  are  realities,  the  writer  knows 
from  personal  experience.  I  have  tried  to  sell  pros- 
pects upon  a  fair  valuation,  and  have  been  unable 
to  even  receive  courteous  attention  from  men  who 
were  prominently  before  the  public  in  glowing  ad- 
vertisements, mining  brokers,  who  would  not  even 
discuss  the  promotion  of  a  prospect  on  a  commis- 
sion basis  of  twenty  per  cent,  which  is  in  itself  ex- 
cessive. 

During  the  World's  Fair  at  St.  Louis,  where  the 
writer  had  a  mining  exhibit,  I  became  very  well 
acquainted  with  some  of  the  most  prominent  pro- 
moters of  what  we  term  "unsound  ventures."  Fre- 
quently arguments  have  been  indulged  in,  but  to 
no  avail.  On  their  side  it  was  self;  on  mine,  a  knowl- 
edge that  while  I  wanted  the  money,  my  work  could 
not  succeed  upon  their  lines  of  financing. 

The  writer  one  day  called  on  a  promoter  of  some 
reputation,  and  the  following  conversation  relative 
to  commissions  took  place: 

"It  is  useless  to  even  talk  to  me  about  my  hand- 
ling this  proposition  of  yours  under  fifty  per  cent 
commission.     I  get  it  from  everybody  I  do  busi- 


ROCKS  IN    THE   ROAD   TO   FORTUNE      183 

ness  with,  and  I  cannot  make  any  distinction  be- 
tween jour  property  and  theirs." 

"But  do  the  prospects  that  pay  you  this  commis- 
sion justify  by  their  actual  showing  the  representa- 
tions you  make  and  which  you  say  the  vendors  made 
to  you?" 

"I  do  not  l?;now;  I  am  a  stock  broker.  The  men 
are  endorsed  highly  in  their  local  towns,  and  they 
tell  me  that  without  question  the  property  will  go 
upon  a  dividend-paying  basis  within  the  next  six 
months.  There  was  no  argument  when  I  asked 
them  for  fifty  per  cent.  They  granted  it  and  were 
glad  of  the  opportunity  to  place  their  property  in 
my  hands." 

"But  this  property  that  I  am  presenting  to  you 
is  almost  a  mine.  It  has  bodies  of  ore  blocked  out, 
and  from  reading  this  literature  that  you  put  out  on 
the  property  you  are  handling  I  can  see  nothing  in 
it  that  justifies  the  belief  that  it  will  go  on  a  divi- 
dend-paying basis  in  even  a  year.  I  don't  believe  it 
is  as  good  a  prospect  as  the  one  I  am  presenting, 
as  it  has  not  the  ore  showing." 

"Now,  ni}^  friend,  I  don't  know  you.  These  gen- 
tlemen came  to  me  well  recommended.  I  do  not 
care  to  argue  over  this  matter.  My  terms  are  fifty 
per  cent.  If  you  want  to  talk  that  figure,  all  right. 
I  don't  know  that  your  property  is  any  better 
than  theirs.  I  have  just  as  much  right  to  believe 
that  they  are  telling  me  the  truth  as  I  have  that 
you  are  telling  the  truth,  and  as  they  say  that  their 
mine  is  sure  to  go  on  a  dividend-paying  basis  within 
six    months,    and    you    say    that   you    cannot    tell 


184  ROCKS  IN  THE  ROAD   TO  FORTUNE 

whether  your  proposition  will  ever  go  on  a  dividend- 
paying  basis,  and  that  you  can  only  pay  twenty  per 
cent  commission,  of  what  interest  is  it  to  me  to  even 
consider  your  proposition?  I  believe  that  the  prop- 
erty paying  me  fifty  per  cent  commission  is  as  good 
as  the  property  that  you  offer  at  twenty  per  cent, 
consequently  I  do  not  care  to  do  any  business  with 
you  on  those  lines." 

"Of  course  I  cannot  convince  you  against  your 
own  interest,  but  I  tell  you  that  there  never  was  a 
mine  in  the  world  that  could  pay  that  commission 
unless  it  was  a  blind  luck  bonanza,  and  w^hen  the 
blind  luck  bonanza  is  found  it  does  not  need  money. 
The  trouble  with  you  eastern  promoters  is  that  you 
want  to  remain  in  ignorance.  It  is  to  your  interest. 
You  have  no  regard  for  the  ultimate  result,  all  you 
want  is  your  share.  You  have  entered  the  mining 
business  wrong  at  the  start.  Instead  of  becoming 
identified  with  the  sound  end  of  it,  and  thus  shap- 
ing your  career  from  the  basis  of  a  sound  venture, 
you  instead  start  your  lines  wrong.  You  do  not 
stop  to  reason,  for  reason  would  tell  you  that  the 
man  who  told  you  these  things  is  falsifying,  and 
that  caused  by  self-interest,  that  even  of  the  fifty 
per  cent  that  you  pay  them,  one-half  of  it,  no 
doubt,  goes  in  their  pockets,  and  perhaps  very  lit- 
tle of  the  remaining  quarter  goes  into  the  prospect. 
You  are  in  the  position  of  a  cat  which,  for  the  first 
time,  tastes  fresh  meat.  All  through  the  cat's  life 
there  is  a  remembrance  of  the  taste.  It  is  the  same 
way  with  the  promoter  who  does  not  understand 
mines.    If  an  honest  man  came  to  vou  first  and  ex- 


ROCKS  IN  THE  ROAD   TO  FORTUNE      186 

plained  mining,  its  risks  and  its  enormous  possibili- 
ties, and  the  needs  of  the  mine,  and  succeeded  in 
interesting  you  on  a  sound  basis,  where  the  com- 
missions would  not  have  exceeded  twenty  per  cent., 
which  is  more  than  any  industry  should  pay,  all 
through  your  life  you  would  have  been  a  sound  pro- 
moter, because  when  the  other  man  came  along  you 
would  know  he  was  misrepresenting.  But,  unfortu- 
nately for  you,  who  may  desire  to  be  an  honest  man 
at  heart,  you  get  in  wrong  at  the  start;  you  met  the 
fifty  per  cent,  man,  and  all  through  your  life  you 
will  have  memories  of  the  fifty  per  cent;  that's  your 
ideal,  and  you  will  feel  that  all  mining  should  pay 
that  commission. 

"I  will  tell  you  something  that  may  surprise  you, 
and  wither  your  heart  with  envy  and  regret.  You 
are  a  novice  as  far  as  commissions  are  concerned; 
you  fell  too  soon,  because  you  met  first  a  man  that 
was  only  willing  to  give  you  fifty  per  cent;  you 
gulp  him  and  his  proposition  down,  and  stamp  your- 
self an  insignificant  fifty  percenter,  when,  if  you 
had  looked  around  a  little,  you  could  have  walked 
into  a  higher  grade.  I  know  of  promoters  who  are 
getting  sixty,  seventy  per  cent,  and  in  one  case, 
when  the  oil  excitement  of  Spindle  Top,  Texas,  was 
sweeping  over  this  country,  I  was  in  Cincinnati,  try- 
ing to  sell  a  prospect,  and  was  informed  by  a  gen- 
tleman that  he  had  been  offered  eighty  per  cent  of 
the  total  receipts.  I  tell  you  this  that  you  may  have 
a  little  to  think  over  and  perhaps  feel  sad  that  you 
did  not  first  meet  the  eighty  percenter.  Further, 
I  will  say  to  you  that  while  I  cannot  do  business 


186  ROCKS  IN  THE  ROAD   TO  FORTUNE 

with  you,  no  man  that  wants  to  give  a  fair  gain  for 
a  fair  risk  can  do  business  with  you;  but  if  you 
could  look  into  the  homes  that  the  fifty  percenter 
wrecks,  and  see  the  sorrow  you  bring,  you  would  be 
ashamed  to  have  been  connected  with  it.  And,  fur- 
ther, I  will  tell  you  that  I  knew  a  man  in  Hart- 
ford, Conn.,  who  was  given  the  stock  books  of  the 
company  he  promoted,  with  certificates  signed  up 
in  blank,  and  he  could  fill  them  out  for  what  he 
liked  and  send  the  company  what  he  felt  the  com- 
pany ought  to  have.  No;  you  jumped  too  quick; 
you  should  have  looked  around  a  little;  you  should 
have  more  than  you  get.  You  are  the  class  of  man 
that  believes  any  hole  in  the  ground  that  shows  ore 
is  a  mine — the  class  of  a  man  that  a  certain  miner 
had  in  view  when  the  following  conversation  took 
place : 

A  miner,  kicking  his  borro  down  the  trail  towards 
the  local  store  for  supplies,  meets  a  prospector  com- 
ing up.     The  latter  says  to  the  former: 

"Don't  see  you  in  town  much.  Keeping  yourself 
up  on  the  mountains  pretty  close?" 

"Yes,  beating  at  the  old  hole  up  there." 

"How  is  she  looking,  Bill?" 

"She  don't  look  well.  Ore  is  about  all  pinched 
out.  I  am  going  to  stick  with  her  fifty  feet  further, 
then  if  she  don't  look  any  better,  I  am  going  to 
stock  her  and  turn  the  company  over  to  one  of  them 
eastern  promoters." 

It  is  natural  to  say  that  the  writer  is  not  a 
favorite  with  the  gentleman  in  question.  I  have 
followed  his  promotions.    Not  one  has  ever  turned 


ROCKS  IN  THE  ROAD   TO  FORTUNE       187 

out  an  honestly  earned  dollar.  For  a  while  he  kept 
in  the  public  eye.  Later  on  his  mail  was  stopped 
by  the  United  States  Government  as  fraudulent. 
Whereupon  he  started  out  again  under  another 
name,  but  it  was  too  late.  The  damage  had  been 
done  to  those  who  believed  his  earlier  assertions.. 

I  once  met  a  forty  per  cent  promoter  who  was 
fair  enough  to  acknowledge  that  the  commission 
was  excessive.    He  said: 

"You  complain  about  the  forty  per  cent  commis- 
sion, and  I  agree  with  you  that  it  is  ruinous  to  any 
legitimate  mining  enterprise.  It  is  a  fearful  load 
for  any  business  or  mine  to  carry.  But  other 
brokers  get  that  figure.  Some  get  more.  I  have 
had  men  come  in  here  with  holes  in  the  ground  that 
they  call  mines  and  offer  me  a  fourth  interest  in 
the  stock  and  fifty  per  cent  of  what  I  took  in,  but, 
as  green  as  I  was,  I  did  not  believe  that  they  were 
good,  because,  as  you  say,  I  did  not  see  how  any 
mine  could  stand  to  pay  those  rates." 

"But  you  have  continued  in  accepting  forty  per 
cent,  commission  and  also  some  bonus  stock?" 

"Yes,  I  have  continued  to  accept  it  because  in 
the  beginning  I  got  in  wrong,  and  I  cannot  change 
the  system.  I  know  of  men  other  than  myself  in 
this  business  who  realize  that  it  is  wrong.  But,  as 
I  have  said,  we  cannot  help  ourselves.  The  system 
has  been  started  wrong,  and  I  will  explain  why  it 
has  been  so  started.  In  the  first  place,  the  heavy 
commissions  paid  us  have  created  an  expensive  sys- 
tem of  flotation.  The  local  agents  in  the  smaller 
cities  look  upon  us  as  grafters.    They  have  an  idea 


188  ROCKS  IN   THE  ROAD   TO  FORTUNE 

that  we  are  getting  nearly  all  that  comes  in  any- 
how, and  they  demand  their  tribute.  It  may  sur- 
prise you  when  I  say  that  forty  per  cent  does  not 
always  bring  us  a  profit.  First,  here  are  the  of- 
fice expenses,  the  costly  literature,  advertising, 
circularizing,  etc.,  all  of  which  costs  money.  The  lo- 
cal agents  through  the  country  to  whom  we  supply 
literature  at  our  own  expense  demands  twenty-five 
per  cent  of  every  dollar  he  takes  in.  We  even  have 
to  pay  the  postage  on  the  certificates  that  we  mail 
back  to  him.  Besides,  each  day  it  becomes  harder 
to  sell  stocks." 

"That's  natural.  Each  day  the  people  are  be- 
coming more  aware  of  the  fact  that  Ihere  is  no 
stability  in  the  system  of  mine  promotion  by  sen- 
sational promises  and  expensive  publicity,  that 
there  are  no  results,  that  it  is  nothing  but  a  sys- 
tem of  promise  and  generality,  that  it  is  not  min- 
ing. It  is  to  the  credit  of  the  public  that  they  have 
slowly  commenced  to  realize  that  the  way  you 
raise  money  is  unsound,  and  that  forty  per  cent  is 
a  load  that  they  do  not  themselves  wish  to  carry, 
because  they  are  carrying  the  load  when  the  burden 
falls  on  the  property  in  which  they  invest.  Now, 
such  being  the  case,  why  don't  you  take  up  the 
sound  side  of  mine  promotion,  insist  upon  the  abso- 
lute evidence  of  values,  and  turn  down  all  of  these 
propositions  that  offer  you  forty  or  fifty  per  cent 
commissions?" 

"But  I  am  not  a  miner.  I  am  not  able  by  experi- 
ence to  discern  whether  these  men  are  telling  me 
the  truth.     I  have  my  heavy  expenses  here.    They 


ROCKS  IN   THE  ROAD   TO  FORTUNE      189 

offer  these  commissions  and  I  naturally  take  them." 

"Do  you  ever  consider  the  case?  Do  you  know 
that  in  the  history  of  mining  there  have  never  been 
four  commercial  mines  made  by  that  system?  I  do 
not  even  know  of  one,  but  I  say  four  for  argument's 
sake?" 

"No,  I  never  studied  the  matter.  In  fact,  I  am 
a  commission  broker,  and  the  man  who  Sells  the 
mine  is  responsible  for  making  the  assertions." 

"But  you  are  the  man  who  gives  his  word  to  the 
public.  When  you  are  convincing  the  buyer,  he  be- 
lieves all  you  say,  yet  you  tell  me  that  you  do  not 
know  whether  what  you  say  is  true  or  not.  Then 
why  do  you  say  it?" 

This  man  comes  under  the  title  of  the  inex- 
perienced broker.  He  accepted  the  commissions  be- 
cause others  accepted  them,  and  that  the  precedent 
was  established  in  the  beginning. 

Another  promoter  told  me  that  his  market  letters 
grew  more  costly  each  month;  that  they  have  to  use 
stronger  language  to  keep  pace  with  competing 
brokers;  that  the  promoters  who  publish  what  is 
known  as  "house  organs,"  or  papers  owned  by  the 
brokers,  are  faced  with  a  heavy  monthly  outlay.  I 
asked  him  the  question,  "Don't  you  find  the  people 
recognize  that  the  paper  is  your  own  organ,  and  is 
simply  sent  to  them  for  the  purpose  of  influencing 
opinion  in  your  ability,  no  matter  how  well  you  may 
disguise  the  fact?" 

"Yes,  and  for  that  reason  the  expense  grows 
greater.  We  actually  expended  |2,000  per  week 
upon  our  paper,  employed  the  best  writers  upon 


190  ROCKS  IN  THE  ROAD  TO  FORTUNE 

questions  of  finance.  We  were  looped  on  to  wires, 
tapping  the  western  fields,  that  it  might  give  us 
the  semblance  of  standing,  and  in  every  conceiv- 
able manner  disguise  the  fact  that  it  was  our  pa- 
per. We  went  so  far  as  to  editorially  attack  other 
promoters  who  were  paying  bogus  dividends,  guar- 
antees, curb  flotations,  etc," 

"What  was  the  object  of  the  attack?" 
"Our  correspondence  proved  the  wisdom  of  the 
plan.  We  obtained  various  lists  of  investors  and 
mailed  them  a  copy.  When  they  saw  we  were  open 
in  our  condemnation  of  certain  practices,  they 
naturally  said,  'This  firm  knows  its  business,  and  I 
will  trust  them  with  my  affairs.'  Then  we  kept  be- 
fore them  the  fact  that  we  had  sold  some  stock  that 
had  paid,  and  claimed  credit  for  giving  advice  upon 
some  stock  that  had  advanced  rapidly  in  value." 
"Did  all  this  pay  and  was  it  right?" 
"It  did  pay  for  some  time;  we  have  carried  aver- 
age receipts  of  |3,000  a  day  for  several  months  at  a 
time.  Then  our  returns  would  drop  off  and  we  be 
faced  with  the  necessity  of  doing  something  new  to 
renew  confidence.  As  to  its  being  right,  that  ques- 
tion does  not  enter  into  the  calculations.  I  do  not 
believe  any  man  with  a  cultured  mind,  ever  did  a 
wrong  deliberately,  there  were  always  extenuating 
circumstances,  such  as  a  personal  want,  a  sick  fam- 
ily, etc.,  and  that  failing  to  obtain  help  they  forgot 
themselves." 

"That's  just  it;  I  agree  with  you  that  there  are 
fine  intellects  engaged  in  mine  promotion  upon  the 
forty  per  cent  and  fifty  per  cent.    It  is  this  class  of 


I  .5 


o 

a 


ROCKS  IN  THE  ROAD   TO  FORTUNE      191 

men  who  should  reason,  they  know  right  from 
wrong.  Will  you  ever  look  upon  the  extraction  of 
ore  as  a  business  to  be  gauged  by  its  profits  and  not 
altogether  from  the  speculative  end?" 

"The  people  do  not  seem  to  reason  that  way.  I 
can  take  a  high  grade  dividend  mine,  capitalized  at 
a  million  dollars,  and  sell  the  shares  at  fifty  cents 
on  the  dollar,  equivalent  to  five  hundred  thousand 
dollars  for  the  mine,  and  the  public  will  not  buy 
that  stock.  I  can  take  a  prospect  capitalized  at  five 
million  dollars  and  offer  the  stock  at  twenty  cents 
on  the  dollar,  or  at  the  rate  of  one  million  for  the 
prospect,  and  they  will  buy  it.  They  do  not  seem  to 
reason.  Why  should  I?  They  evidently  go  upon 
the  assumption  that  if  they  strike  ore,  the  stock 
will  be  worth  par." 

"Then  you  mean  to  say  that  the  public  do  not 
care  whether  it  is  a  shallow  prospect  with  a  thou- 
sand to  one  chance  against  success,  or  a  splendidly 
equipped  prospect?" 

"Yes,  that's  what  I  mean;  we  give  them  what 
they  want." 

"But  is  it  not  a  fact  that  in  placing  the  prospect 
before  them,  you  intimate  that  it  will  be  a  positive 
success  and  go  to  par,  and  thus  really  educate  them 
to  this  pernicious  belief?" 

"We  naturally  try  to  make  it  appear  as  favor- 
able as  possible." 

"But  isn't  it  a  fact,  that  it  is  the  promoter  of 
unsound  enterprises  that  has  created  this  belief  in 
the  public,  that  every  prospect  will  be  a  mine,  and 
is   not  the  promoter  himself  responsible   for  this 


192  ROCKS  IN   THE  ROAD   TO  FORTUNE 

education,  and  for  the  disastrous  results  that  come 
to  eastern  investors  through  following  the  advice, 
and  buying  in  what  they  believe  is  sound  mining 
enterprises?" 

The  man  was  fair  enough  to  say  "Yes." 
An  exhaustive  review  of  the  careers  of  the  men 
who  charge  these  exorbitant  commissions  shows  a 
remarkable  fact,  if  there  is  anything  in  the  hand  of 
retribution,  it  follows  these  men,  because  generally 
the  money  that  they  make  is  taken  away  from  them 
by  some  means.  One  of  the  heaviest  promoters, 
who  recently  established  the  most  costly  offices 
ever  seen  in  the  United  States,  after  an  experience 
of  what  is  known  as  a  successful  campaign,  met 
loss  after  loss  in  other  ventures,  until  his  entire 
fortune  was  swept  away.  And  it  is  the  same  with 
them  all  in  the  end — they  have  nothing. 

In  these  promotions  there  is  an  influence  exer- 
cised, far-reaching  in  its  disastrous  effect;  it  invades 
the  smallest  city,  and  agents  that  were  at  one  time 
satisfied  with  an  honest,  though  modest,  commission 
of  from  three  to  ten  per  cent  on  reasonably  secure 
collaterals,  see  their  future  destroyed  through  tast- 
ing the  higher  commissions  paid  by  the  unsound  pro- 
moter. There  is  something  sad  following  the  re- 
sults of  these  unsound  mine  ventures,  where  they 
affect  a  local  broker.  The  main  office  sends  into  the 
country,  suave  men;  they  point  to  the  enormous 
possibilities  of  the  mining  industry,  and  obtain  the 
co-operation  of  men  highly  respected  in  their  local- 
ities; they  even  invade  the  churches  and  obtain  the 
co-operation  of  preachers,  broad-minded  physicians 


ROCKS  IN  THE  ROAD   TO  FORTUNE      193 

become  an  easy  dupe,  and  they  sell  these  stocks  to 
their  intimate  associates.  When  the  results  follow, 
which  are  generally  bad,  these  men  are  the  ones  that 
suffer  the  most.  They  were  not  solely  to  blame, — 
it  was  lack  of  judgment;  they  did  not  have  the  ex- 
perience to  measure  men  or  to  detect  the  unsound. 

It  is  a  terrible  thing  to  live  in  a  small  country 
city,  where  every  child  knows  you,  where  your  fam- 
ily ties  are  such  that  you  cannot  leave  it  all  behind 
and  hide  yourself  in  some  new  locality,  but  you 
have  to  stand  there  and  face  it  for  years,  where  a 
man  says,  as  he  passes  you  on  the  street,  "That  man 
swindled  me."  Those  local  agents,  perhaps,  are 
honest;  the  twenty  or  twenty-five  per  cent  that  is 
paid  them  by  the  unsound  promoter  they  believe  is 
honestly  earned.  There  are,  of  course,  cases  where 
the  man  at  heart  is  dishonest,  but  I  am,  however, 
speaking  of  the  man  who  is  anxious  to  make  money, 
and  believes  what  is  told  him.  If  they  had  been  let 
alone,  they  would  have  continued  on  in  their  honest 
way  making  a  living,  respected  by  those  who  knew 
them. 

A  few  years  ago  one  of  the  big  promoting 
houses  in  New  York  City  sent  an  agent  through  the 
State  of  Ohio,  forming  what  is  called  "local 
agents."  In  a  small  city  they  made  a  connection 
with  a  respectable  man,  and  for  quite  a  while  he 
sent  in  a  number  of  orders  each  week.  Finally  they 
grew  less  and  less,  then  ceased.  The  main  office, 
not  desiring  to  lose  a  good  salesman,  sent  a  man  to 
visit  him,  thinking  that  perhaps  some  other  house 
had  won  him  away.     The  road  man  found  him  sit- 


194  ROCKS  IN   THE  ROAD   TO  FORTUNE 

ting  on  a  bench  in  front  of  a  broken  down  building, 
and  said,  "I  am  from  the  firm  in  New  York;  how  do 
you  do?"  "Very  well,  thank  you"  (silently  whit- 
tling a  stick).  "Haven't  the  house  been  treating 
you  ail  right?"  "Oh,  yes"  (still  whittling).  "No- 
body been  trying  to  knock  the  firm  to  you,  have 
they?"  "No,"  (still  whittling).  "Why  haven't  you 
sold  some  more  stock  for  us?"  "Haven't  got  any 
more  friends"  (still  whittling). 

This  tells  the  story.  This  man  had  worked  all  of 
his  friends,  and  it  is  a  case  with  all  of  those  local 
agents  who  are  inexperienced;  they  believe  what 
is  told  them,  and  when  the  crash  comes,  they  suffer. 
Even  the  children  in  the  streets  cry  after  them, 
making  jocular  remarks  about  the  mine. 

A  promoter  of  wide  experience,  who  should  have 
been  a  rich  man,  informed  me  the  other  day  that  it 
actually  cost  him  sixty  per  cent  to  get  the  stock  sold, 
and  then  twenty  per  cent  to  collect  the  money. 
This  is  a  gratifying  confession,  for  it  proves  that 
the  people  themselves  are  awake  to  the  fact  that  a 
man  cannot  spend  thousands  of  dollars  in  the 
dailies,  advertising  stocks  for  sale  at  a  sacrifice, 
pay  the  expenses  of  extravagant  olfices,  railroad 
charges  of  traveling  salesmen,  and  have  anything 
left  to  put  under  ground. 

I  assert  that  if  the  commission  basis  for  flota- 
tion of  mining  stocks  had  been  placed  at  twenty 
per  cent,  and  a  fixed  figure  of  sixty  per  cent  of  the 
total  receipts  actually  placed  in  underground  de- 
velopment, there  would  to-day  have  been  one-third 
more  of  a  precious  metal  production  than  there  is. 


ROCKS  IN   THE  ROAD   TO  FORTUNE      195 

I  further  predict  that  within  a  year  it  will  be 
almost  impossible  for  the  majority  of  promoters  to 
sell  mining  stocks  without  boldly  stating  the  amount 
of  commissions  they  are  receiving,  the  amount  that 
the  prospect  actually  cost,  and  the  amount  of  cash 
which  goes  under  ground  in  mine  development. 

During  the  last  session  of  the  Denver  Legisla- 
ture, the  writer  consulted  with  a  Denver  daily,  on 
the  question  of  endeavoring  to  obtain  a  national 
State  law  compelling  promoters  of  mines  or  pros- 
pects to  put  sixty  per  cent,  of  their  total  receipts 
under  ground.  If  the  people  of  the  United  States, 
who  are  favorable  to  the  mining  industry,  who  ap- 
preciate the  wonderful  possibilities  of  our  mineral 
domain,  and  who  desire  to  participate  in  the  riches 
placed  by  Nature  in  her  treasury  vaults,  taking  a 
fair  risk  for  more  than  a  fair  gain,  will  ask  every 
promoter  to  tell  them  the  amount  of  cash  they  re- 
ceive as  commissions  before  they  buy  the  stock,  it 
will  go  a  long  ways  towards  solving  the  problem 
that  confronts  us. 

What  the  promoter  says  relative  to  the  cost  of 
selling  shares  is  true.  There  is  much  expense 
attached  to  it  that  does  not  appear  to  the  casual 
observer.  Some  of  the  most  unscrupulous  and 
brainy  human  sharks  are  in  this  business.  The  man 
who  desires  an  easy  living  always  searches  out  some 
avenue  where  he  can  live  in  comparative  luxury, 
through  divorcing  those  who  do  work  hard  from 
their  earnings,  by  plausible  promises  of  quick  for- 
tune. The  man  who  is  simply  ignorant  and  does 
not  know  that  these  excessive  commissions  are  not 


196  ROCKS  IN  THE  ROAD   TO  FORTUNE 

based  upon  unsound  rules,  and  not  conducive  to 
the  welfare  of  any  industry,  who  only  reads  of  the 
bonanza  side  of  mining,  who  knows  nothing  of  the 
needs  of  a  great  property,  that  a  continuous  stream 
of  dividends  may  pour  from  the  earth  through  its 
long  life  of  profitable  existence,  are  themselves  the 
prey  of  what  is  known  as  the  "road  agent/'  This 
class  follow  the  unsound  promoter  the  same  as  a 
pilot  fish  follows  its  favorite,  and  much  of  the  com- 
missions fritter  away  upon  schemes  presented  to 
the  inexperienced  promoter,  whereby  he  is  led  to 
believe  that  he  can  obtain  the  names  of  the  share- 
holders in  other  companies  or  the  lists  of  other 
brokers,  considerable  of  their  money  is  paid  out  to 
men  who  claim  to  be  able  to  sell  stocks,  who  re- 
ceive advances  for  expenses,  and  who  remain  upon 
the  pay  roll  as  long  as  they  can  find  any  plausible 
excuse  for  so  doing.  They  very  seldom  turn  in  any 
equivalent  for  what  they  receive,  for  men  of  this 
class  are  not  workers,  they  are  drones  in  the  hive, 
they  go  into  country  towns,  and  exist  in  their  way, 
satisfied  to  have  their  board  and  personal  expenses 
paid,  and  in  return  they  write  encouraging  letters 
to  the  home  office. 

The  expenses  of  sustaining  what  is  known  as  "in- 
formation bureaus"  are  very  heavy.  Under  this 
branch  the  investor  is  led  to  make  inquiries  relative 
to  the  property  in  question,  or  the  stability  of  the 
promoters.  Sometimes  there  is  a  chain  of  two  or 
three  of  these  bureaus,  one  referring  to  the  other, 
all  with  the  intention  of  creating  opinion  favorable 
to  the  promoter. 


ROCKS  IN  THE  ROAD   TO  FORTUNE      197 

There  is  the  further  expense  of  publishing  the 
catch  notices;  that  is  to  say,  when  one  promoter  has 
made  a  heavy  campaign  in  the  papers,  and  is  sup- 
posed to  have  sold  a  lot  of  stock,  other  promoters 
seek  to  obtain  the  names  of  the  stockholders  by  in- 
serting advertisements,  warning  the  public,  asking 
for  proxies  for  bogus  meetings,  or  over  the  name  of 
an  attorney,  stating  that  valuable  advice  will  be 
given  of  great  importance  to  the  stockholders  in 
certain  companies,  and  that  if  they  write  they  may 
save  themselves  considerable  of  a  loss. 

Every  conceivable  form  for  attracting  the  atten- 
tion of  the  investor  is  used.  It  all  costs  money,  and 
before  the  promoter  knows  it,  he  is  out  in  deep 
water;  the  sale  of  stock  always  at  some  time  slacks 
up  in  every  enterprise,  then  they  have  to  start  other 
enterprises  to  keep  the  interest  alive;  thus  one  firm 
in  this  country  has  been  known  to  have  floated 
twenty  subsidiary  companies, — it  is  virtually  an 
endless  chain,  some  supposed  to  be  earning  divid- 
ends, some  not. 

Each  promoter  has  his  own  way  of  trying  to  at- 
tract the  attention  of  the  public  to  himself;  some 
stand  as  reformers,  and  their  system  is  to  put 
advertisements  in  the  papers,  warning  the  public 
against  all  mining  stocks  and  inviting  them  to 
write  to  them  for  information.  We  may  yet  hear 
that  some  man  is  preparing,  to  present  to  Congress 
a  bill  to  protect  the  investor  against  mining  fraud. 
I  listen  to  all  these  reports,  but  when  one  has  a  split 
lip,  he  does  not  care  to  laugh.  But  all  of  these  things 
go  to  make  up  the  business  of  mine  promotion  as 


198      ROCKS  IN  THE  ROAD  TO  FORTUNE 

practiced  by  the  unsound  promoter,  and  it  is  this 
system  that  has  led  to  so  much  discredit  and  caused 
so  much  loss  to  those  who  believed  they  were  min- 
ing, when  they  were  nowhere  near  mining.  Yet 
every  promoter  insists  that  his  is  the  best. 

A  colored  preacher  of  the  Methodist  faith  was 
exhorting  his  congregation,  crying  aloud: 

"Come  and  jine  the  army  of  the  Lord." 

From  away  in  the  rear,  a  buxom  colored  woman 
got  up  and  cried  out: 

"I  have  already  jined." 

"Where  did  you  jine,  sister?" 

"In  Richmond,  last  year." 

"What  church?" 

"Baptist." 

"Go  long,  niggar;  you  ain't  in  the  army,  you'r'> 
in  the  navy." 

A  very  intelligent  promoter,  in  discussing  the 
question  of  exorbitant  commissions,  stated  that  they 
did  their  part;  that  they  were  not  responsible  for  the 
failure,  that  they  raised  the  money,  and  that  it  was 
the  fault  of  the  mine.  I  claim  that  it  was  not  the 
fault  of  the  prospect,  but  a  fault  of  the  system,  that 
is  here  combated,  because  the  prospect  never  had  a 
chance.  It  did  not  receive  suflBcient  of  the  money  in- 
tended to  be  put  into  the  development,  to  give  it  a 
fair  chance.  This  argument  will  not  stand  the  cold 
light  of  investigation,  because,  no  matter  what  may 
happen  to  the  mine,  the  promoter  always  gets  his, 
and  in  taking  it  he  cripples  the  enterprise  to  the  ex- 
tent that  not  one  in  a  thousand  ever  becomes  divi- 
dend payers. 


ROCKS  IN   THE  ROAD   TO  FORTUNE      199 

The  writer  is  aware  that  the  prospect  is  the 
basis  of  the  mine,  and  that  from  apparently  worth- 
less prospects,  often  rich  bonanzas  are  won.  The 
system  of  interesting  capital  in  prospects  is  not 
combated, — it  is  the  value  placed  upon  the  prospect 
that  meets  with  the  condemnation  of  the  commer- 
cial miner,  for  when  a  prospect  is  presented  to  the 
eastern  investor  at  high  valuation,  he  is  led  to  be- 
lieve that  it  must  be  a  mine.  Every  man  has  a  right 
to  a  just  proportion  of  any  enterprise  as  compen- 
sation for  his  labors  in  the  promotion  of  the  same, 
but  the  writer  does  not  believe  that  a  man  should 
take  from  a  project  a  large  proportion  of  money 
needed  for  its  operation,  until  the  results  of  the 
operation  prove  that  he  is  entitled  to  the  same. 

Take,  as  an  illustration,  a  man  in  a  three  dollar 
room,  his  rent  unpaid,  his  meal  ticket  punched  out, 
w^ith  no  credit,  and  fear  in  his  heart  that  the  land- 
lord may  rap  at  the  door  and  throw  him  in  the 
street;  he  has  more  than  an  ordinary  brain  and  he 
conceives  an  idea,  something  that  he  thinks  is  of 
value.  If  the  landlord  came  in  at  the  time  and 
asked  for  his  rent,  he  could  not  cash  the  idea  for 
even  three  dollars.  Consequently  the  non-proven 
idea  is  of  no  material  value.  To  make  it  so,  the 
material  value  must  be  shown,  and  this  man  is  not 
able  to  do  that  through  his  lack  of  capital.  He  goes 
to  a  capitalist  and  explains  his  condition — explains 
his  idea;  the  man  has  no  evidence  that  the  idea  will 
ever  amount  to  anything,  but  he  believes  what  the 
inventer  says  and  advances  him  |10,000  with  which 
to  patent  the  idea,  make  a  model,  and  to  demonstrate 


200      ROCKS  IN   THE  ROAD   TO  FORTUNE 

the  practicability  of  his  thought.  It  is  not  believed 
that  the  man  with  the  idea  should  take  |4,000  from 
the  110,000  before  he  proves  the  practicability  of  the 
idea,  and  convert  that  amount  to  his  own  use;  he 
will  be  excused  in  converting  sufficient  of  the 
money  to  pay  his  living  expenses,  but  not  forty  per 
cent,  because  as  yet  his  idea  has  not  proved  of 
value, — it  may  never  prove  of  value,  yet  the  capi- 
talist has  faith,  and  on  that  faith  he  puts  up  the 
needed  funds. 

It  is  just  the  same  with  a  prospect;  there  is  no 
material  value,  until  capital  and  labor  associate 
themselves  together  and  open  the  prospect  and 
demonstrate  its  intrinsic  value;  without  capital  or 
labor  the  prospect  will  always  be  worthless.  The 
man  who,  wandering  over  the  mountains,  finds  the 
sliver,  does  not  by  that  discovery  create  its  value; 
it  can  only  be  made  of  commercial  interest  by  the 
application  of  capital,  and  when  a  man  says,  "I 
have  faith  in  what  you  say  and  in  the  indications 
that  you  claim  exist,  and  I'll  help  you  open  that 
prospect  to  determine  its  value  and  take  a  chance 
with  you,  here  is  |10,000,  go  ahead  and  open  it," 
has  the  man  the  right  to  put  from  |4,000  to  |5,000 
of  that  money  in  his  pocket,  befort^  he  makes  an 
effort  to  demonstrate  the  value  of  the  prospect? 

Before  sending  your  money  to  an  agent  or  pro- 
moter, ask  these  questions:  How  much  commis- 
sion are  you  receiving  directly  or  indirectly?  How 
much  bonus  stock  do  you  receive?  How  much  of 
my  money  goes  into  actual  underground  work? 


CHAPTER  XVII. 

EXCUSES    GIVEN    INVESTORS    WHEN    FAIL- 
URE FOLLOWS  UNSOUND  PROMOTIONS. 

In  a  previous  chapter  it  was  stated  that  some 
men  prepared  their  excuses  for  failure  almost  as 
soon  as  they  make  their  announcements  calling  for 
subscriptions. 

When  commercially  planned  ventures  fail, 
there  is  seldom  an  excuse  offered,  those  interested 
having  been  informed  in  the  beginning  of  opera- 
tions, of  the  risks,  the  possibilities  of  success,  and 
the  facts  under  which  the  venture  was  promoted  be- 
ing duly  explained.  Thus,  those  supplying  the  cap- 
ital needed  to  prove  the  commercial  or  non-commer- 
cial character  of  the  prospect  are  prepared  for  either 
success  or  failure.  The  experienced  men  study  con- 
ditions, and  the  possibility  of  the  discontinuance  of 
ore  is  discussed,  the  amount  of  capital  needed  in  the 
event  of  success  is  plainly  stated,  that  there  may  be 
no  lack  of  funds  in  the  event  that  the  prospect  be- 
comes commercial. 

Generally  the  prospectus  of  a  commercial  oper- 
ator reads  about  as  follows: 

"This  prospect  was  discovered  at  an  elevation  of 
10,000  feet  and  gave  an  ore  showing  directly  at  the 

201 


202  ROCKS  IN  THE  ROAD   TO  FORTUNE 

surface.  There  has  been  a  100  ft.  prospect  hole  sunk 
and  ample  value  is  shown  in  the  ore,  to  class  it  com- 
mercial, provided  the  ore  continues  with  depth  and 
the  shoot  is  of  sufficient  length. 

"Having  reached  the  efficiency  of  a  horse  whim, 
we  are  faced  with    the    necessity  of  a    forty-horse 
power  hoist  to  continue  development.      This,  with 
boiler  equipment,  will  cost  |3,000,  which,  when  in- 
stalled, will  give  us  ample  power  to  prove  the  worth 
of  this  prospect.     If  at  the  depth  of  300  ft.  we  find 
that  the  ore  is  continuous  and  that  our  work  has 
enabled  us  to  place,  practically  in  sight,  |200,000 
gross  value  of  standing  ore,  we  will  then  be  obliged 
to  put  in  |20,000  more,  to  install  an  air  compressor, 
improve  the  living  quarters  and  prepare  to  ship  ore. 
If  the  mineral  holds  its  present  character,  it  will  be 
a  smelting  product  and  we  will  need  no  reduction 
machinery,  shipping  to  the  custom  work.    If  the  ore 
should  change  and  become  lower  in  grade  and  of  a 
concentrating  character — yet  amply  exposed  to  jus- 
tify the  expenditure — then  we  must  be  prepared 
to  either  join  some  other  producing  mine  in  the  con- 
struction of  a  co-operative  mill,  or  to  install  one  of 
our  own,  so  it  can  be  stated  that  the  extreme  limit 
of  risk  in  this  proposition  may  be  classed  as  $20,000, 
for,  if  by  the  time  that  is  expended,  we  have  not 
demonstrated  the  commercial  character  of  the  pros- 
pect, we  will  not  go  further  without  the  consent  of 
those  interested.    If  we  are  successful  and  construct 
the  mill,  $50,000  will  be  the  limit  that  we  will  need 
to  place  the  property  upon  a  dividend  paying  basis. 


ROCKS  IN   THE  ROAD   TO  FORTUNE      203 

We  always  have  the  right  to  discontinue  work  at 
any  point,  in  event  that  the  ore  showing  is  discour- 
aging, so  the  loss  can  be  limited." 

Here  the  commercial  operator  invites  the  assist- 
ance of  capital  upon  a  plain  statement  of  facts.  The 
buyer  is  not  told  that  there  are  millions  of  dollars 
in  sight,  that  there  is  no  element  of  risk,  and  the 
question  of  the  total  capital  investment  that  may  be 
needed  is  covered.  The  buyer  in  this  case  knows 
that  he  is  taking  a  risk  and  knows  its  limit;  he 
therefore  uses  his  judgment  relative  to  the  hand- 
ling of  his  funds,  that  he  may  be  prepared  to  meet 
the  demands  that  may  be  made  upon  him  in  the 
event  of  success.  In  such  cases  there  never  occurs 
the  closing  down  of  properties  at  an  important  stage 
of  their  development  because  the  promoters  have 
run  out  of  money  and  did  not  in  the  beginning  ar- 
range for  sufficient  capital  to  carry  work  to  a  cer- 
tain point.  In  these  commercially  operated  prospects 
the  figures  sometimes  run  as  high  as  a  million 
dollars,  but  in  each  case  the  investor  knows 
the  steps  that  will  be  taken  as  his  money 
is  called  for.  Generally  these  men  subscribe 
the  amounts  they  desire,  and  pay  it  in  as  the  money 
is  needed  at  the  mine,  but  more  often  the  entire 
capital  is  placed  in  bank  at  the  time  of  promotion. 

The  inexperienced  operator,  who  obtains  a  pros- 
pect with  a  small  body  of  fifty  dollar  ore  showing 
at  the  surface,  goes  upon  the  assumption  that  the 
shoot  is  practically  endless,  and  he  figures  vast  ton- 
nage without  even  a  few  hundred  feet  of  work  upon 


204  ROCKS  IN  THE  ROAD   TO  FORTUNE 

the  property  to  demonstrate  the  size  or  continuity 
of  the  ore  body.  He  does  not  figure  upon  the  contin- 
gencies that  may  arise,  nor  the  need  of  a  set  amount 
of  capital.  He  proceeds  to  incorporate,  and  publish 
the  prospect  as  a  mine.  Success  to  him  is  positive. 
He  never  expresses  a  doubt,  and  as  long  as  he  can 
sell  stock  he  continues  to  work  in  a  desultory  man- 
ner, for  these  unsound  ventures  are  never  operated 
as  when  under  the  influence  of  experienced  men.  It 
is  giving  a  wide  latitude  when  I  say  that  less  than 
thirty  per  cent,  of  the  total  receipts  from  these  ven- 
tures go  into  underground  work.  The  balance  is  ex- 
pended in  various  forms  of  promotion,  finally  comes 
failure,  a  natural  consequence,  for  failure  is  possible 
even  in  the  well-conducted  venture,  but  in  the  latter 
the  loss  is  limited.  It  is  a  commercial  proposition. 
They  do  not  proceed  to  waste  money  when  their 
judgment  tells  them  that  Nature  has  not  been  gen- 
erous to  this  particular  prospect.  But  when  failure 
comes  to  the  unsound  venture  there  is  not  even  the 
satisfaction  of  knowing  that  the  money  was  lost  in 
a  fair  fight  with  Nature.  Soon  the  company  lan- 
guishes, the  stockholders  receive  no  more  glowing 
reports  of  the  progress  of  work,  rich  strikes,  high  as- 
says and  glowing  newspaper  accounts.  Later  an  ex- 
cuse is  given  that  a  few  dollars  more  is  necessary 
and  they  ask  for  a  voluntary  assessment.  Finally 
the  loss  is  total.  The  mine  closes,  and  becomes  a 
monument  to  inexperience,  then  follow  the  excuses. 
Men  and  women  who  have  invested,  believing  the 
assertions  made  in  the  literature,  ask  for  informa- 


ROCKS  IN  THE  ROAD   TO  FORTUNE       205 

tion  and  many  excuses  are  used,  except  the  right  ex- 
cuse, which  was: 

"We  did  not  know  how  to  mine." 

One  splendid  system  to  follow  is  to  ask  the  pro- 
moter if  he  has  secured  all  the  money  needed,  and 
never  send  him  all  of  yours  until  you  are  given 
sound  evidence  that  he  has,  otherwise  your  dividend 
may  be  one  of  the  excuses  enumerated.  With  am- 
ple money,  well  expended,  there  are  many  prospects 
that  can  be  made  commercial,  but  which  will  re- 
main prospects  if  not  soundly  financed. 

One  of  the  most  serious  of  all  mistakes  made  by 
the  inexperienced,  or  those  of  an  unsound  turn  of 
mind,  is  the  failure  to  estimate  upon  what  it  will 
cost  to  carry  certain  developments  to  successful 
termination.  A  man  figures  that  he  will  build  a 
warehouse  to  cost  $100,000 — he  has  no  money  of 
his  own,  consequently  he  seeks  capital  by  incor- 
poration. Should  he  go  out  and  obtain  first  ten  dol- 
lars from  one  man,  twenty  from  another  and  per- 
haps fifty  from  a  third,  and  then  commence  to 
build,  with  no  assurance  that  he  can  raise  the  resi- 
due, if  he  fails,  as  he  invariably  will  do,  he  loses 
the  money  that  a  few  have  foolishly  invested  with- 
out asking  the  vital  question :  "Have  you  the  money 
to  complete  this  work?"  Of  what  benefit  is  the 
crying,  cringing  excuse  of  that  man? 

"I  thought  I  could  raise  the  money.  Am  very 
sorry.    I  should  have  known  better." 

Yet  day  after  day,  year  after  year,  this  system 
is  followed  by  the  unsound  promoters  of  prospects. 


206      ROCKS  IN  THE  ROAD  TO  FORTUNE 

They  seldom,  if  ever,  make  a  plain  statement  of  the 
cost  of  the  project.  They  seldom,  if  ever,  solicit 
subscriptions  by  an  open  explanation  of  the  sum 
total  to  be  required.  But  instead  they  boldly  flare 
out  and  solicit  subscriptions  and  take  every  dollar 
they  can  seduce  by  any  artifice  from  the  investor, 
spend  it,  either  upon  themselves,  partially  upon 
themselves  or  their  office  expenses  and  trust  to  luck 
to  take  care  of  the  morrow.  It  is  believed  that 
where  a  man  takes  a  large  part  of  one  man's  money, 
expends  it,  at  the  same  time  aware  of  the  fact  that 
unless  a  great  deal  more  is  obtained  the  enterprise 
is  doomed  to  failure,  thereby  causing  the  loss  of 
the  money  prematurely  collected,  that  man  can  be 
reached  by  law.  Millions  of  dollars  are  lost  in 
this  manner,  and  additional  distrust  of  mining  in- 
spired. A  man  has  a  right  to  solicit  subscriptions 
to  open  a  mine,  but  he  should  first  know  what  it  is 
going  to  cost,  and  that  cost  should  be  plainly  set 
forth  in  the  appeal  to  capital. 

Commercial  miners  ask  aid,  but  by  a  plain  state- 
ment of  facts;  generally  reading  as  follows: 

We  estimate  it  will  cost  not  to  exceed  |100,000  to 
demonstrate  the  soundness  of  our  judgment  of  this 
enterprise.  We  solicit  subscriptions,  payable  ten 
per  cent,  on  subscribing,  which  will  be  placed  in 
bank  pending  the  raising  of  the  needed  funds.  If 
the  $100,000  is  not  fully  subscribed  the  ten  per  cent, 
will  be  returned. 

The  man  who  reads  the  publicity  appeals  for 
money  will  be  doing  the  industry  a  great  benefit 


ROCKS  IN  THE  ROAD  TO  FORTUNE      20 

if  he  will  write  the  promoters  the  following  letter: 

"If  you  will  tell  me  the  amount  needed  to  place 
this  property  upon  a  paying  basis,  using  a  sound 
estimate,  I  will  become  a  party  to  the  amount,  with 
the  understanding  that  my  money  is  not  to  be  used 
until  the  full  amount  is  secured,  and  further  in- 
form me  how  much  of  my  money  will  be  absorbed 
in  the  commission  end  and  how  much  will  actually 
go  under  ground." 

If  the  investor  will  do  this  instead  of  sending 
their  money  before  they  know  if  there  is  ample  se- 
curity to  make  success,  there  will  be  many  more 
commercial  mines  and  we  will  not  be  obliged  to  face 
the  excuses  that  follow  the  usual  run  of  publicity 
promotions  such  as: 

"The  mine  is  all  right,  but  we  did  not  have 
money  enough.  If  we  could  have  gone  a  little 
deeper  we  would  have  surely  hit  the  ore.  It  will 
yet  prove  to  be  a  rich  property  and  then  we  will  all 
regret  not  continuing." 

"We  found  the  smelters  would  rob  us  on  our  ore 
shipments,  so  we  closed  down  the  works  until  better 
rates  are  given  us." 

"The  water  was  more  than  we  could  handle  with 
our  equipment  and  the  foolish  stockholders  would 
not  put  up  any  more  money  to  buy  heavier  pumps." 

"We  are  very  sorry,  but  we  believed  what  was 
told  us  about  the  assay  of  the  ore;  we  later  on  found 
that  it  did  not  run  as  high  as  we  were  led  to  believe 
and  consequently  it  would  not  pay  to  work." 


208  ROCKS  IN  THE  ROAD   TO  FORTUNE 

"We  were  lied  to  by  our  engineer.  The  mine  was 
salted." 

'There  was  a  horse  in  the  vein  which  cut  off  the 
ore." 

"We  found  the  cost  of  treatment  too  high,  so  we 
have  shut  down  until  the  mill  men  who  have  been 
treating  the  ore,  come  to  their  senses  and  make  a 
lower  rate." 

"We  were  deceived  by  our  Superintendent.  He 
was  robbing  us." 

"I  am  very  sorry,  but  I  am  not  a  miner  and  I  be- 
lieved in  what  the  other  men  told  me.  I  find  that 
they  were  dishonest  men  just  as  ignorant  as  myself 
and  we  were  unable  to  make  a  success  of  it." 

"It  is  unfortunate,  but  it  could  not  be  helped," 
and  other  excuses  of  a  like  nature,  none  of  which 
would  be  given  by  a  commercial  miner,  because  all 
the  things,  obstructive  of  success,  are  considered 
before  they  undertake  the  venture.  Every  point 
bearing  upon  the  operation  of  a  mine  would  be  in- 
vestigated and  the  Superintendent  would  know  just 
what  to  expect  in  the  event  of  success  or  failure. 
To  the  commercial  miner  there  is  but  three  reasons 
for  failure.  "There  is  no  ore."  "Local  conditions 
are  bad,"  or  "The  ore  is  not  marketable." 

Where  men  conduct  mining  as  a  business,  they 
consider  these  points  with  the  same  care  as  a  manu- 
facturer of  pottery  would  consider  his  clay  supply, 
his  fuel,  his  market,  and  his  transportation 
facilities,  but  where  a  man  is  more  interested 
in     selling    the     stock     of    a    prospect  than     he 


ROCKS  IN  THE  ROAD   TO  FORTUNE       209 

is  in  creating  a  commercial  value  from  the 
product  of  the  mine,  he  does  not  consider  these  vital 
points.  The  investor,  trusting  to  the  promoter,  does 
not  himself  study  these  cardinal  principles  so  essen- 
tial to  success. 

Perhaps  in  the  future,  if  the  buyer  of  shares  is 
prepared  for  the  excuses  of  the  unsound  promoter, 
that  operator  may  not  be  as  ready  with  his  stories, 
but  may  attempt  to  learn  the  commercial  side  of  the 
business.  If  that  can  be  accomplished,  the  writer 
has  done  considerable  toward  the  betterment  of  the 
feeling  between  the  Eastern  investor  and  the  West- 
ern commercial  miner. 


CHAPTER  XVIII. 


THE  WORTHLESSNESS  OF  CHEAP  ENDORSE- 
MENTS—THE VALUE  OF  EXPERT  REPORTS. 

The  writer  has  many  acquaintances  among  the 
editors  of  the  leading  mining  journals  and  they  all 
know  his  ideas  upon  this  subject.  Frequently  it  is 
claimed  that  he  is  too  radical  on  the  question;  the 
reader  can  form  his  own  opinions.  Whenever  these 
editors  say  a  good  thing,  I  always  give  them  credit. 

The  desire  is  to  congratulate  the  editor  of  a  cer- 
tain monthly  on  the  following,  which  is  reproduced 
bodily: 

"When  considering  a  mining  investment  offer- 
ing, do  not  be  influenced  so  much  by  the  number  of 
alleged  endorsements  as  by  the  character  of  them. 

"Some  alleged  authorities  will  endorse  every- 
thing, whereas,  those  whose  endorsements  would 
carry  weight  frequently  refrain  from  endorsing 
anything. 

"  ^Well  known  and  representative  local  citizens,' 
who  testify  to  the  innumerable  good  points  of  a  min- 
ing proposition,  may  prove,  upon  investigation,  to  be 
just  so  many  'saloon  loafers,'  who  have  signed  the 
endorsements  written  for  them,  for  the  nominal  con- 
sideration of  so  many  fiingers  of  whiskey. 

210 


ROCKS  IN  THE  ROAD   TO  FORTUNE      211 

"  'Leading  mining  and  financial  publications,' 
which  are  quoted  regarding  the  'Sure  thing'  procliv- 
ities of  certain  investment  offerings,  may,  upon  in- 
vestigation, prove  to  be  so  many  'write-up'  sheets, 
which  will  publish,  for  a  consideration,  most  any- 
thing which  will  go  through  the  mails. 

"It  has  become  a  practice  on  the  part  of  some 
operators  to  use  alleged  endorsements  from  the 
press  securing  the  same  advertising  patronage,  and 
frequently  writing  the  endorsements  themselves,  or 
editing  what  the  fly-by-night  publisher  'dreams'  out 
for  them. 

"Always  investigate  the  source,  and,  where  you 
can,  secure  the  original  of  the  alleged  endorsement, 
seeing  what  it  looks  like  in  print,  and  what  the  pub- 
lication in  which  it  is,  looks  like  itself." 

This  is  first-class  reading  matter,  and,  if  the  in- 
vestor could  see  it  on  the  same  page  with  the  ad- 
vertisement displaying  these  so-called  "valuable 
endorsements,"  it  would  be  a  long  step  in  the  right 
direction.  But  the  force  of  this,  and  other  equally 
good  advice  from  the  same  editor,  is  lost,  for  the  rea- 
son that  it  is  only  a  small  part  of  the  contents  of  the 
monthly.  The  display  advertisements,  news  from 
many  camps  and  the  farcical  system  of  reports  upon 
mining  companies,  confuse  the  inexperienced  reader 
of  mining  literature,  and  the  study  of  the  "many 
fortune-building  opportunities"  causes  him  to  forget 
the  warning.  Some  investors  who  read,  and  heed, 
may  say,  "These  advertisements   must  be  true  or 


212  ROCKS  IN   THE  ROAD   TO  FORTUNE 

they  would  not  be  in  the  paper  where  the  editor 
openly  cautions  the  buyer." 

The  man  of  limited  means,  however,  does  not  al- 
ways reason  that  the  paper  is  powerless  to  censor 
all  advertisements,  and  cannot  do  so,  if  it  is  to  re- 
main in  business.  The  Daily  Mining  Eecord,  The 
Mining  Investor,  Profit  and  Loss,  The  Mining 
World,  The  United  States  Investor  and  several 
other  reputable  mining  publications  write  splen- 
did advice,  but,  unfortunately,  it  is  often  side 
by  side  with  some  sensational  promise.  If 
any  one  of  these  papers  were  to  make  an 
index  book  of  their  advice  to  investors,  while 
it  would  not  always  be  the  result  of  practical 
experience  that  generated  the  thought,  yet  some 
matter  would  be  found  that  would  save  the  in- 
vestor vast  sums,  if  he  could  turn  to  the  subject  at 
the  time  he  needed  the  advice.  But  the  influence  of 
able  articles  written  one  day  are  lost  the  next,  for 
the  life  of  these  publications,  in  the  vast  majority 
of  the  issues,  is  thrown  aside,  and,  when  kept,  the 
special  advice  cannot  be  found  when  wanted.  It  is 
this  knowledge  that  causes  the  author  to  publish 
"Rocks  in  the  Road  to  Fortune"  in  chapter  form,  so 
that  each  question  is  treated  by  itself. 

These  local  endorsements  have  long  been  a  jest 
in  the  producing  camps  and  we  only  hope  that  those 
who  read  the  article  referred  to  will  remember  it. 
Frequently,  among  the  first  steps  taken  by  men,  in- 
experienced in  practical  mining,  when  they  are  pre- 


ROCKS  IN  THE  ROAD   TO  FORTUNE       213 

paring  their  advertisement  and  literature,  is  to  ob- 
tain the  written  endorsement  of  some  miner,  sur- 
veyor, storekeeper  or  general  encyclopedia  of  local 
information,  and  these  opinions  and  endorsements 
are  spread  broadcast  through  the  press  and  mails, 
with  the  object  of  creating  the  impression  that  the 
property  to  be  promoted  is  of  high  local  reputation. 
Those  who  are  better  versed  in  criminal  law  obtain 
these  endorsements  for  the  purpose  of  being  able  to 
say:    '^We  were  ourselves  deceived." 

A  retrospect  of  the  field  of  mining  failures,  how- 
ever, does  not  bear  out  this  claim  of  innocence,  for 
such  efforts  are  confined  to  the  avenue  of  what  is 
termed  "Unsound  promotion."  The  commercial  miner 
never  stoops  to  this.  To  him,  the  very  publication 
of  a  series  of  endorsements  of  this  kind  stamps  the 
project  suspicious.  When  the  papers  containing 
these  endorsements  find  their  way  into  the  camp, 
it  is  a  matter  of  mirth,  for  generally  those  who  are 
the  endorsers  are  poor  fellows  with  but  little  mental 
capacity,  and  only  in  rare  cases  have  they  even  com- 
mon underground  ability.  The  storekeeper  and 
saloon  proprietor  endorse  to  bring  trade.  The  irre- 
sponsible hanger-on  in  the  district — a  failure  in  life, 
with  no  credit  at  bar  or  tailor — has  nothing  to  lose. 
A  surveyor,  perhaps  capable  of  running  his  lines, 
deplorably  ignorant  of  the  science  of  mining,  may 
add  his  opinion,  which  is  generally,  however,  worth- 
less; and  last  but  not  least,  the  venerable  old-time 
miner  of  "forty  years  experience,"  which,  if  inves- 
tigated, should  read  "forty  years  of  failure." 


214  ROCKS  IN  THE  ROAD  TO  FORTUNE 

There  is,  also,  the  expert  endorsement — the  so- 
called  Engineer,  who  writes  of  geological  forma- 
tions, the  fact  that  the  prospect  lays  similar  to  one 
in  South  Africa.,  or  who  draws  a  map  showing  that 
the  prospect  is  in  the  heart  of  some  mineral  zone 
that  has  produced  ore;  the  man  who  talks  consider- 
ably, yet  does  not  say  anything;  the  expert  who 
draws  his  conclusion  of  what  the  ore  will  average 
by  a  few  samples,  or  what  the  Superintendent  "told" 
him.  He  has  obtained  from  a  few  sacks  of  high- 
grade  ore,  which  almost  any  prospect  can,  for  a  few 
feet,  show.  The  so-called  Engineer  that  winds  up 
his  report  with  the  opinion  that  it  will  be  a  dividend 
payer,  yet,  in  forming  that  opinion,  he  has  not  him- 
self measured  or  sampled  enough  ore  actually  in 
sight  to  justify  the  belief  that  the  prospect  \\dll  even 
pay  one  per  cent,  per  annum  on  ten  thousand  dollars. 

If  the  investor  will  only  read  between  the  lines 
of  this  class  of  report,  and  ask  some  pointed  ques- 
tions, they  will  assist  materially  in  clearing  the 
field  of  mine  engineering,  leaving  it  to  the  hundreds 
of  legitimate  members  of  the  Institute  of  Mining 
Engineers,  who  will  plainly  say  yes  or  no. 

The  commercial  miners  will  appreciate  a  letter 
to  the  engineer  in  question,  reading  as  follows: 

"What  prospects  have  you  reported  upon  that 
are  to-day  on  a  healthy,  dividend-paying  basis?  Are 
you  of  practical  underground  experience — I  mean, 
have  you  ever  worked  in  a  mine,  as  a  miner,  or  is 
your  experience  book-taught.  In  making  the  exam- 
ination, how  many  samples  did  you  take,  and  did 


ROCKS  IN  THE  ROAD   TO  FORTUNE      215 

you  ship  a  few  tons  for  test.  From  the  ore  actually 
in  sight,  can  you  advise  the  purchase  of  the  stock 
at  the  valuation  placed  on  the  shares?  How  many 
hours  were  you  actually  employed  in  making  this 
examination — I  mean  time  actually  spent  under- 
ground?" 

The  writer  has  witnessed  many  so-called  exam- 
inations, the  expert  arrives  in  the  morning,  rides 
over  the  country,  visits  a  prospect,  remains  a  few 
moments,  accepts  the  advice  of  those  interested, 
picks  a  few  samples,  and  the  "deed  is  done;  "  such  a 
thing  as  insisting  on  mill  returns  under  his  own 
supervision  is  not  often  thought  of. 

A  man  can  make  a  superficial  though  sound  ex- 
amination of  a  prospect  where  the  desire  be  to  de- 
termine as  to  the  advisability  of  its  o\yners  doing  a 
little  more  work,  but  where  the  intention  is  to  pro- 
mote the  prospect  on  the  grounds  that  it  is  a  mine, 
and  make  extracts  from  the  expert's  reports,  I  as- 
sert that  there  should  be  a  complete  sampling.  Mill 
returns  and  the  amount  of  tonnage  actually  in 
sight — especially  if  the  floatation  is  upon  a  basis  of 
from  1100,000  to  |500,000.  Remember  that  experts 
or  engineers  are  only  human,  and  there  have  been 
cases  where  they  have  been  incarcerated  for  mak- 
ing reports  that  were  not  considered  altogether 
sound. 

There  is  another  class  of  engineers  that  the  in- 
vestor in  prospects  should  know,  for,  through  fol- 
lowing their  "conservative"  advice,  many  good 
things  are  lost.    I  refer  to  the  man  who  turns  down 


216       ROCKS  IN  THE  ROAD   TO  FORTUNE 

nearly  everything  he  sees,  of  a  prospect  nature,  that 
he  may  not  make  any  mistakes,  and  thus  he  is 
classed  as  a  "safe  man."  If  the  mining  industry, 
which  is  built  upon  courage  to  risk,  that  the  gain 
may  be  large,  depended  upon  this  class  of  endorse- 
ment, the  West  would  be  a  sparsely  settled  com- 
munity. Next  to  the  "sure  thing"'  promoter  in  the 
matter  of  detriment  to  the  industry,  comes  the  "sure 
thing  engineer,"  the  so-called  "mine  coward,"  the 
man  with  a  high  reputation  as  a  "heavy  charger," 
who  makes  no  mistakes.  We  all  know  that  an  en- 
gineer cannot  see  in  the  ground,  that  his  opinion  is 
only  that  born  of  experience,  that  very  few  pros- 
pects develop  into  mines,  but  if  all  prospects  are 
condemned  there  will  soon  be  no  commercial  prop- 
erties, thus  the  man  who  only  wants  to  examine  pro- 
ducing mines  is  of  little  benefit  to  the  mining 
world;  he  is  afraid  to  go  out  in  the  arena  and  say 
boldly:  "This  prospect  is  good  and  should,  by  the 
nature  of  its  showing,  develop  into  a  mine." 

The  "mine  cow^ard"  keeps  capital  out;  he  only 
brings  new  capital  in  where  it  is  not  needed^  for 
these  men,  posing  like  sages,  onl}^  bring  to  the  at- 
tention of  Eastern  capital  mines  that  are  of  proven 
value — properties  passed  the  prospect  stage — and 
that  do  not  require  any  expert  testimony  to  prove 
that  they  are  shipping  ore.  Any  feeble-minded  ore 
sorter  can  select  such  a  mine  as  a  valuable  property. 
New  money  is  not  needed  at  that  avenue,  for  new 
money  is  constantly  being  won  from  the  earth. 
What  the  West  wants  is  new  money  for  prospect 


ROCKS  IN  THE  ROAD   TO  FORTUNE      217 

development  that  more  mines  of  that  character  may 
be  opened  up.  The  "sure  thing"  engineer  is  of 
benefit  only  to  the  Eastern  man  rich  enough  to  pay 
for  a  producing  mine;  he  is,  however,  of  little  use 
to  the  prospector  who  needs  a  square,  fearless  en- 
dorsement. This  divertisement  from  local  endorse- 
ment is,  however,  treating  the  endorsement  side. — 
Let  the  investor  reason. 

Local  endorsements  mean  but  little,  and  they 
have  weight  only  among  those  who  do  not  know 
that  generally  it  is  the  poorest  of  all.  The  en- 
dorsement that  carries  weight  with  the  commer- 
cial miner  is  the  plainly  expressed  opinion  of  a  prac- 
tical operator,  who  says: 

"I  have  tested  the  ore  in  sufficient  volume  to  con- 
vince me  that  the  value  is  there.  The  ore  bodies 
already  opened  justify  a  further  exploration.  It  is 
a  good  prospect.  It  will  cost  $50,000  to  prove  if  it  is 
a  mine." 

This  kind  of  talk  is  worth  more  than  a  thousand 
endorsements  from  men  who  do  not  know.  The 
best  endorsement  of  a  mine  or  prospect  is  the  fol- 
lowing: 

"We  have  recently  shipped  two  hundred  tons  of 
this  ore,  and  the  smelter  returns  justify  us  in  asking 
you  to  invest  in  the  venture.  We  place  a  speculative 
value  of  |100,000  upon  the  property  and  invite  you 
to  participate  in  its  operation  upon  that  basis." 


CHAPTER  XIX. 

THE  ABANDONED  MINES. 
THE  LOSSES  THAT  FOLLOW  THEIR  RE-OPEN- 
ING. 

The  longer  a  mine  or  prospect  remains  idle,  the 
more  liable  is  its  value  to  be  exaggerated.  Nearly 
every  old  district  has  one,  or  perhaps  a  dozen,  aban- 
doned properties  of  which  tradition  speaks  as  mar- 
velously  rich.  Many  companies  have  lost  large  sums 
in  reclaiming  them.  The  writer  has  had  sad  experi- 
ence in  this  avenue  of  mining,  and  the  only  consola- 
tion is  the  costly  knowledge  that,  when  a  man  is  a 
mining  liar,  there  is  no  limit  to  his  romance.  When 
interested  in  local  reports  as  to  the  value  of  the  ore 
left  standing  in  the  bottom  of  an  abandoned  mine  at 
the  time  of  its  shut-down,  carefully  weigh  the  infor- 
mation. Go  into  some  other  district  and  casually 
refer  to  the  fact  that  such  an  abandoned  mine  has 
been  highly  spoken  of.  No  matter  how  unanimous 
local  opinion  may  be  as  to  its  worth,  obtain  a  little 
outside  information,  divide  it  by  half,  then  reason 
it  out  by  a  study  of  conditions  past  and  present.  Do 
not  be  influenced  by  the  old  time  miner,  "who 
worked  the  last  shift  in  the  shaft,  and  knows  that 
they  left  three  feet  of  fine  smelting  ore  in  sight."    1 

218 


ROCKS  IN  THE  ROAD   TO  FORTUNE       219 

have  seen  these  large  bodies  pinched  down  to  six 
inches  after  the  mines  were  UEwatered. 

The  longer  a  mine  that  has  shipped  some  ore  in 
the  early  days,  is  closed,  the  more  its  ore  values  in- 
crease in  the  minds  of  those  who  remain  in  the  vicin- 
ity, subsisting  as  they  may, — and  there  are  always 
old-timers  near  by  who  talk  a  lot  of  romance. 

As  years  roll  on,  the  abandoned  mine  really  be- 
comes to  them  a  treasury  vault.  They  finally  be- 
lieve that  which  they,  in  the  beginning,  knew  was 
fiction.  One  will  cite  some  remarkable  occurrence, 
or  speak  of  some  shipment;  the  next  will  enlarge 
upon  it,  and  so  it  goes.  At  last,  the  "unbitten"  comes 
along,  or  some  promoter  in  need  of  a  "mine  with  a 
history,"  and  the  property  is  launched  with  a  flare 
of  figurative  trumpets.  If  the  mine  is  filled  with 
water,  so  much  the  better;  for,  in  the  plausible  man- 
ner common  to  such,  he  may  say: 

"Water  in  those  days  was  the  enemy  of  the  rich- 
est mines,  and  this  one  did  not  possess  the  magnifi- 
cent machinery  that  we  now  intend  to  install,  in 
order  that  we  may  circulate  the  wondrous  wealth 
of  this  old  bonanza,  which  we  will  do  when  the 
water  is  under  control,  with  our  powerful  pumps. 
Every  obtainable  record  proves  conclusively  that 
the  ore,  which  is  known  to  be  at  the  bottom  of  this 
rich  mineral  depository,  is  sufficient  to  pay,  at  least, 
one  million  dollars  a  year  in  dividends." 

Generally,  those  old  abandoned  mines  never  did 
pay,  and  never  will  pay.  Many  of  them  did  ship 
some  rich  ore,  but  figuring  the  cost,  there  was  little, 


220       ROCKS  IN  THE  ROAD   TO  FORTUNE 

if  any  profit;  seldom  did  the  ores,  found  to  be  rich 
at  the  surface,  continue  to  great  depth.  Nearly  all 
mines,  especially  those  at  high  elevations,  show  rich 
ore  at  the  surface,  but  usually  it  gives  way  to  a 
lower  grade,  generally  at  about  two  hundred  feet  in 
depth.  Most  of  these  old  properties  were  worked 
when  silver  was  |1.25  per  ounce,  and  even  then  they 
failed.  Local  conditions  may  have  improved,  but  the 
difference  in  the  price  of  silver  must  be  considered. 
Many  have  been  pumped  out,  only  to  find  that  the 
shoot,  that  may  have  paid  a  little  in  the  early  days, 
had  been  completely  worked  out,  or  that  the  exist- 
ing grade  was  low,  the  high  grade  having  been  ex- 
tracted, leaving  behind  only  the  mill  dirt.  Miners 
seldom  leave  any  ore  that  will  pay  any  profit. 

There  have  been  cases  where  mines  have  been 
tied  up  in  litigation  for  a  number  of  years,  which 
were  and  are  of  unquestionable  value.  But  in  such 
cases  there  is,  as  a  rule,  a  well-kept  record  of  it,  and 
cogent  reasons  as  to  why  it  is  unworked.  But  even 
bitter  litigation  does  not  remain  long  unsettled,  if 
there  is  rich  ore  to  be  mined.  But  where  an  Ameri- 
can mine  has  been  abandoned  for  a  number  of  years, 
there  are  more  reasons  than  water  to  account  for  it, 
and  it  is  safe  to  let  the  "golden"  opportunity  pass, 
You  will  win  upon  general  averages. 

The  writer  has  assisted  in  the  reclaiming  of  this 
class  of  mines,  and  from  his  experience,  if  the  prop- 
erty be  of  extensive  underground  work,  his  advice 
would  be  to  leave  the  old  shaft  and  go  off  some- 
where else  upon  the  same  vein  and  sink  a  new  one; 


ROCKS  IN  THE  ROAD  TO  FORTUNE       221 

provided  you  are  determined  to  open  the  mine,  for 
if  ever  there  was  a  costly  undertaking,  it  is  to  re- 
claim an  abandoned  property;  the  timbers  are  usu- 
ally rotten,  the  nails  eaten  by  acid  water,  old  stopes 
caved,  and  there  are  labors  ahead  almost  equal  to 
the  task  of  Hercules  when  he  undertook  the  clean- 
ing of  the  Augean  stables. 

By  close  association  with  the  residential  human 
relics  of  the  old  days  of  any  mining  camp,  a  man  can 
appreciate  the  unsoundness  of  their  reasonings  and 
arguments.  A  simple  study  of  conditions,  past  and 
present,  will  show  the  fallacy  of  their  claims,  which 
are  merely  iridescent  dreams  that  have  left  such 
pleasing  recollections  as  to  have  all  the  substance  of 
reality. 

The  historian  of  those  abandoned  mining  wrecks 
are  generally  interested  in  some  little  claim  near  at 
hand;  and,  perhaps  on  the  assumption  that  misery 
loves  company,  they  entice  the  inexperienced  to 
operate.  One  favorite  story  is:  "Just  before  the 
water  drove  the  miners  out  of  the  lower  works, 
there  was  coming  up  in  the  bottom  of  the  shaft  the 
richest  ore  that  they  had  ever  seen  in  the  mine." 

Another  page  of  those  Mountain  Cabin  Fireside 
Romances  is  the  "cave  in"  story,  "when  the  timbers 
slipped;  and  before  they  could  get  them  caught  up, 
the  Eastern  company  started  fighting  among  them- 
selves, and  the  mine  closed  down."  Nearly  every 
practical  miner  has  heard  all  those  stories,  and 
sometimes  the  best  permit  their  better  reasoning  to 
be  overcome.    They  hesitate,  and  they  are  lost ;  only, 


222  ROCKS  IN  THE  ROAD   TO  FORTUNE 

however,  with  the  usual  result.  I  plead  guilty  to 
having  twice  in  my  life  expended  thousands  of  dol- 
lars in  these  foolish  efforts,  but  the  last  case  was 
upon  the  advice  and  representations  of  men  I  did 
not  believe  would  stoop  to  the  level  of  a  common 
liar.  I  do  not  mean  to  assert  that  there  are  not 
some  abandoned  mines  that  are  valuable,  for  there 
are  many,  but  they  are  few  and  far  between  in 
America. 

In  Mexico,  the  water  problem  was  a  serious  one. 
Those  ancient  mines  were  operated  long  before  the 
discovery  of  our  Comstock  resulted  in  the  construc- 
tion of  pumps  which  controlled  the  flow  from  about 
3,000  feet  deep.  One  mine,  the  Belcher,  pumped 
over  1,000,000  gallons  each  day.  Two  or  three  cen- 
turies ago,  old  mines  were  abandoned,  because  the 
water  could  not  be  controlled  by  the  crude  whims, 
and  in  many  cases  rawhide  water  bags  carried  up  to 
the  surface  on  the  backs  of  men.  The  writer  knows 
the  obstacles  which  the  Mexican  faced;  for,  in  1884, 
he  was  engaged  in  mill  construction,  and  mine  ex- 
amination of  the  Veta  Madre,  at  Guanajuata,  and 
there  witnessed  the  evidences  of  the  patient  toil — 
which  enabled  that  great  vein  to  so  far  make  an 
aggregate  production  of  |1,400,000,000.  Down  in  the 
Valencia  and  the  El  Rayas  mines,  fully  2,000  feet 
deep,  there  are  stone  steps  worn  smooth  by 
the  countless  times  the  bare  feet  of  the  peon  passed 
laboriously  to  the  surface,  or  to  the  receiving  sta- 
tions which  marked  the  opening  of  the  great  eight- 


ROCKS  IN  THE  ROAD  TO  FORTUNE        223 

sided  shaft,  bearing  rock,  and  often  water,  from 
undrained  winzes  far  in  the  vein. 

That  there  may  be  splendid  Mexican  mines  long 
ago  abandoned  which  will  pay  to-day  is  unquestion- 
ed, but  the  history  of  American  mines  dates  back 
scarcely  half  a  century,  and  even  in  that  time  there 
were  improvements  of  which  the  Mexican  miner 
never  dreamed.  Yet,  in  considering  the  reopening 
of  even  a  Mexican  mine,  abandoned  two  hundred 
years  ago,  there  is  much  food  for  thought  in  this  day 
of  commercialism.  A  grade  of  ore  would  pay  under 
the  then  existing  conditions  that  could  not  be  mined 
to-day.  Even  if  the  mine  were  reclaimed,  the  fact 
that  it  had  been  worked  extensively  would  not  be 
entirely  in  its  favor,  but  rather  against  it.  The 
problem  of  the  worked-out  shoot  presents  itself,  the 
difference  in  the  price  of  metal  and  labor  is  also  to 
be  considered. 

When  the  glory  of  Mexico  was  at  its  height,  sil- 
ver had  a  far  greater  world-value  than  it  has  to-day, 
and  to  obtain  it  whole  tribes  were  cruelly  held  in 
slavery.  The  labor  cost  was  practically  nothing.  A 
few  grains  of  corn  to  the  slave  each  day,  a  hovel  in 
which  to  sleep,  harsh  taskmasters,  urging  the  weary 
Indians  to  increased  energy, — even  the  sun  by  slow 
process  converted  into  bullion  the  ores  won  by  ty- 
ranny. In  those  days,  labor  was  without  value.  Even 
a  |3  ore  under  the  then  prevailing  conditions,  was 
commercial;  to-day  the  limit  of  profitable  silver  ore 
is  fixed  at  a  gross  value  of  five  dollars  and  fifty 
cents  per  ton. 


224      ROCKS  IN  THE  ROAD  TO  FORTUNE 

After  a  study  of  mining  history  in  the  border 
states  of  our  sister  republic,  as  well  as  at  Guana- 
juata  and  Zacatecas,  it  is  the  writer's  belief  that  if 
the  price  of  labor  ruled  in  the  past  as  it  rules  to-day, 
with  silver  at  one  dollar  an  ounce,  the  product  of 
Mexico,  instead  of  being  |5,000,000,000  would  not 
have  reached  |2,000,000,000. 

On  the  question  of  abandoned  mines,  with  the 
sad  memories  of  personal  experience,  rudely  taught, 
against  our  own  judgment,  resulting  in  too  much 
confidence  in  the  honor  of  men,  the  writer  would 
say  that  the  old  is  not  as  valuable  as  the  new. 
Where  American  capital  has  been  properly  and  ex- 
tensively employed  in  the  old  mines  of  Mexico,  the 
result  has  been  satisfactory.  If  the  values  are  in 
the  ore,  the  American  can  extract  it,  provided  the 
conditions  and  time  are  propitious. 

Take,  for  example,  the  writer's  experience  in 
Guanajuata,  Mexico,  in  1883-84-85.  He  realized  the 
importance  of  the  lower  grade  ores,  and  built  the 
first  American  stamp  mill  at  Marfil;  also  an  Area! 
Halliday  Tramway  from  the  Valencia  mine.  But 
as  coal  was  |20  a  ton,  it  was  found  that  the  expenses 
were  too  great.  The  period  was  fully  fifteen  years 
ahead  of  the  times.  Later,  capital  followed  the 
trail  then  blazed;  water  power  was  harnessed;  elec- 
tricity brought  in;  the  cyanide  system  of  ore 
treatment  perfected;  and,  as  a  result,  there  has 
been  built  upon  the  foundation  the  writer 
started,  and  lost,  a  great,  profitable  indus- 
try.     1907    saw    success    to    the    American    form 


^^^ 

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! 

Life. 

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1,  -^  ,  J^- 

ROCKS  IN  THE  ROAD  TO  FORTUNE       225 

of  stamp  mill  crushing,  followed  by  cyaniding; 
and  the  product  from  this  old  camp  is  claimed 
now  reaches,  in  Mexican  money,  |12,000,000  a  year. 
But  at  no  time  was  the  mother  vein  at  Guanajuata 
abandoned.  With  the  exception  of  periodical  shut- 
downs, caused  by  revolutions,  this  vein  was  always 
worked.  The  values  were  there,  and  the  miners 
extracted  the  ore.  There  were  periods  of  Borrasca 
and  Bonanza,  but  the  work  continued.  As  to  the 
profit,  the  cost  of  labor  prevailing  naturally  made  it 
satisfactory.  But  if  that  vein  was  just  discovered, 
I  venture  to  say  that  the  American  miner  would 
extract  more  ore  in  thirty  years  than  the  Mexican 
extracted  in  nearly  four  hundred  years.  A  study 
of  the  short  life  of  the  Bonanza  days  of  the  "Com- 
stock"  will  bear  me  out  in  my  assertion. 

Abandoned  mines  in  Mexico,  and  abandoned 
mines  in  the  United  States,  are  two  different  things. 
But  in  Mexico  the  labor  problem  is  yet  to  be  faced; 
as  Americans  invade,  the  price  of  labor  increases, 
though  the  price  of  metal  remains  the  same.  Then 
there  is  always  some  future  bullion  tax  to  be  consid- 
ered. A  man  may  make  mistakes  in  Mexico,  but  if 
he  profits  by  experience  he  will  not  repeat  them. 
The  writer  bought  the  Game  Ridge  40-stamp  mill, 
near  Rosita,  Colorado,  dismantled  it,  freighted  it 
to  Guanajuata,  and  never  opened  the  boxes.  The 
experience  in  the  smaller  mill  first  constructed, 
gave  him  all  the  knowledge  at  that  time  possible  to 
gain, — there  was  no  use  of  wasting  more  money. 


226  ROCKS  IN  THE  ROAD   TO  FORTUNE 

The  hardest  problem  in  mining  is  to  know  when  to 
stop. 

Should  an  abandoned  mine  be  attractive  to  the 
investor,  he  can  reduce  his  possibilities  of  loss  by  a 
careful  estimate  of  the  probable  cost  of  reclaiming, 
also  to  determine  if  there  is  any  basis  of  fact  for  the 
prevailing  romance.     Inexperienced  men  generally 
go  into  these  abandoned  propositions  without  con- 
sidering the  full  cost.     It  is  safe  to  figure  that  the 
expense  of  opening  and  retimbering  an  old  mine 
will  be  fully  seventy-five  per  cent,  of  the  original 
working  charge;  more  often  it  is  over  the  cost  of 
new  work,  unless  it  is  simply  a  shaft  to  drain — but 
where  a  mine  has  thousands  of  feet  of  levels  and 
stopes  it  is  a  serious  thing  to  undertake  to  again 
open  that  part  of  a  vein.    In  these  assertions  we  will 
not  be  joined  by  some  persons.     And  I  state  that 
there  are  some  mines  classed  as  "abandoned"  which 
really  had  ore,  but  the  prevailing  conditions  did  not 
permit  of  profitable  operation.  Such  mines  were  sel- 
dom extensively  worked  and  can  be  reclaimed  with- 
out much  capital  expenditure,  for  if  the  local  con- 
ditions did  not  admit  of   profit,    there    would  not 
have  been  any  large  extraction,  unless  it  was  the 
basis  of  a  stock  gambling  scheme,  where  product 
was  made  irrespective  of  a  profit  margin.  But  when 
a  mine  is  reported  to  have  shipped  ore  extensively, 
the  evidence  is  against  rather  than  in  favor  of  the 
property,  after    its    abandonment.  It  is    probably 
worked  out  in  its  exposed  shoot,  and  this  coupled 
with  the  heavy  task  of  reclaiming  would  force  a 


ROCKS  IN  THE  ROAD  TO  FORTUNE       227 

commercial  miner  to  sink  in  a  new  place  for  he 
would  have  new  ore  with  which  to,  in  part,  pay  the 
expenses.  When  the  defenders  of  abandoned  mines 
speak,  they  are  general,  they  seldom  point  to  the 
example  of  success,  where  dividend  paying  mines 
have  been  created  from  abandoned  ones.  A 
success  in  America  on  these  lines  is  the  exception. 
I  would  be  pleased  to  have  the  names  of  even  four. 
The  opening  of  new  mines  is  preferred.  The  shell 
of  a  sweet  nut  is  of  little  value  after  the  kernel  has 
been  extracted. 


CHAPTER  XX. 

THE  EXPERIENCE  OF  THE  BROKER  OF 

VITAL  IMPORTANCE  TO  THE 

INVESTOR. 

In  February,  1899,  the  author  delivered  an  ad- 
dress at  the  Broadway  Theater,  Norwich,  Connect- 
icut, on  "Copper  Mines  of  the  World,"  in  which  an 
explanation  was  made  of  the  ways  the  colossal  for- 
tunes of  the  mining  kings  had  been  amassed,  taking 
the  commercial  side,  describing  the  personal  efforts 
of  such  men  as  Clark,  Daly  and  Douglass  in  direct- 
ing and  advising  with  their  best  talent,  asserting 
that  by  an  intercourse  and  exchanging  of  views 
with  experienced  men,  profitable  deductions  were 
made,  pointedly  stating,  that  so  far,  there  was  no 
great  commercial  success  in  copper  mines,  except  in 
those  where  experience  directed. 

After  the  address,  I  met  the  usual  crowd  seeking 
personal  information,  among  them  a  lady  of  consid- 
erable age.  She,  it  seems,  has  lost  about  all  she 
possessed  in  the  stock  of  a  certain  mine,  highly 
boomed  a  short  time  before,  but  of  which  all  com- 
mercial operators  residing  in  the  district,  had  ex- 
pressed doubts  of  even  a  reasonable  chance.  The 
lady  had  been  induced  to  buy,  not  by  an  unsound 

228 


ROCKS  IN  THE  ROAD  TO  FORTUNE        229 

promoter,  but  by  a  young  broker  who  was  at  the 
period  of  life  that  I  have  termed  "My  Puppyhood," 
the  period  wlien  his  system  was  ripe  for  inoculation 
with  virus  of  mad,  unreasonable  belief  in  the  dreams 
of  wealth  to  be  won  by  simply  buying  a  stock  and 
waiting  until  the  Standard  Oil  Company  came  to 
your  price.  "Poor  Standard  Oil,"  when  all  other 
arguments  of  the  inexperienced  stock  broker  had 
been  used  in  their  efforts  to  boom  a  stock,  the  so- 
called  master-stroke  is  generally  applied :  "Standard 
Oil  Interests  are  after  this  great  mine." 

I  asked  the  lady  if  the  young  man  upon  whose 
advice  she  bought,, knew  anything  of  mines. 

"Not  that  I  know  of;  his  family  are  very  respect- 
able neighbors,  and  they  tell  me  that  the  bad  men 
who  gave  him  such  glowing  accounts  of  the  mine 
were  the  men  engaged  in  selling  the  property,  but 
that  there  was  no  ore  of  value.  I  am  sure  he  him- 
self was  honest." 

"But,  my  dear  madam,  did  it  not  occur  to  you 
that  your  young  friend,  while  no  doubt  sincere,  was 
not,  by  experience  capable  of  giving  you  good  ad- 
vice?" 

The  lady  had  not  thought  of  that.  She  had  in- 
vested upon  the  assertions  of  a  youth,  who,  no  doubt 
honestly  expressed  the  belief  engendered  by  the 
wild  vaporings  of  a  lot  of  irresponsible  fakirs. 
Her's  and  other  like  experience  teach  the  neces- 
sity of  dealing  only  with  the  experienced  man, 
not  only  in  mining,  but  in  the  purchase  of  every 
other  industrial  securitv. 


230   ROCKS  IN  THE  ROAD  TO  FORTUNE 

As  experience  is  necessary  in  the  selection  and 
operation  of  a  property,  equally  essential  to  the  suc- 
cess of  the  investor,  is  the  practical  knowledge  of 
his  advising  broker  on  questions  pertaining  to  min- 
ing. It  is  needless  to  say  that  a  broker  is  only  the 
handler  of  the  stock,  who  buys  and  sells  as  in- 
structed by  the  investor.  This  is,  in  a  measure  true 
of  Exchange  Members  who  buy  and  sell  in  the  open 
market,  filling  orders  without  asking  questions  such 
as  the  writer  has  done,  but  it  is  not  the  case  with 
the  promoting  broker  who  encourages  investment 
by  advertisements  or  literature,  and  whose  commis- 
sions are  five  times  the  amount  of  the  Exchange 
broker.  He  knows  the  investor  does  not  often  deal 
direct  with  the  miner,  he  buys  his  securities  from 
the  broker  and  generally  forms  his  opinion  of  the 
value  of  a  prospect  or  mine,  either  intrinsically  or 
speculative,  from  the  broker's  advice  or  literature. 

The  writer  has  frequently  asserted  in  private  and 
upon  public  platforms,  that  a  man  who  claims  to  be 
a  specialist  in  any  avenue  of  industrial  activity, 
where  he  invites  capital  in  the  projects  he  stands 
financial  sponsor  for,  that  he  should,  by  experience 
be  able  to  judge  the  value  of  the  project  which  he  is 
promoting,  or  the  intrinsic  worth  of  stock  he  may 
be  selling.  Mining  is  that  one  particular  avenue 
which  a  man  cannot  learn  entirely  by  books.  He 
must  be  closely  associated  with  the  operators  of  the 
property  and  have  a  personal  knowledge  borne  of 
practical  experience,  enabling  him  to  judge  the 
worth  of  statements  made  by  vendors  of  mines,  or 


ROCKS  IN  THE  ROAD  TO  FORTUNE       231 

by  experts  who  write  reports  upon  the  same.  Other- 
wise his  opinion  is  not  worth  a  dollar.  A  mine  is 
brought  to  an  Eastern  promoter,  he  makes  his  com- 
mission contract,  and  prepares  the  literature.  It 
is  upon  these  effusions  that  the  public  invest  their 
money.     The  broker  should  be  in  a  position  to  say: 

"I  am,  by  my  experience  in  mines,  reasonably 
positive  that  all  the  assertions  made  in  this  finan- 
cial circular  are  true." 

It  is  claimed  in  mining,  as  in  no  other  line,  ex- 
perience, hard  and  cold  as  chilled  steel,  is  more 
essential  to  success  in  the  flotation  of  these  enter- 
prises, than  any  other  attribute.  Experienced  men 
may  make  mistakes,  but  they  will  be  honest  ones. 
\\e  all  make  them,  for  fortune  is  a  fickle  jade  and 
Nature  plays  many  pranks,  but  it  is  only  reasonable 
to  expect  more,  larger,  greater  success  from  invest- 
ments founded  upon  the  opinion  of  those  who  do 
know  something  of  the  practical  side  of  mining,  than 
from  those  who  have  not  the  remotest  conception  of 
the  operation  of  a  mine  or  its  actual  possibility  of 
success  from  its  ore  showing,  or  vein  contents. 
There  is  many  a  poor  miner  to-day,  wandering 
through  the  streets  of  the  Eastern  cities,  thinly 
clad,  poorly  fed,  seeking,  thus  handicapped,  the 
large  but  not  always  generous  ear  of  capital,  who 
knows  more  about  commercial  mining  in  one  hour 
than  the  self-esteemed  promoter  of  five  million  dol- 
lar corporations,  based  upon  bare  prospects,  will 
<^ver  know  in  this  life. 

A  broker  dealing  in  railroad  or  general  Indus- 


232   ROCKS  IN  THE  ROAD  TO  FORTUNE 

trial  securities  which  have  an  intrinsic  value  based 
upon  positive  earnings,  which  increase  or  decrease 
each  year,  or  have  a  speculative  value,  regulated  by 
stock  exchange  orders  of  supply  and  demand,  ac- 
cording to  sentiment,  may  be  able  to  advise  judici- 
ously as  to  the  possibility  of  a  rise  or  fall  in  values, 
but  it  is  only  his  opinion,  which  is  prompter  to  his 
advice.  Still,  by  his  experience  in  the  stock  market, 
he  has  a  right  to  advance  his  opinion,  but  when 
this  class  of  brokers  goes  outside  of  the  line  in  which 
he  is  versed,  and  stands  as  sponsor  for  mining  enter- 
prises, and  solicits  the  investments  of  the  masses, 
that  are  lacking  in  experience  and  knowledge,  of 
whether  the  broker  is  qualified  to  direct  in  our 
most  important  industry,  where  men  of  forty  years' 
experience  feel  their  way  slowly,  then  the  public 
should  know  that  the  broker  is  simply  talking  spec- 
ulation, and  if  failure  follows,  the  industry  itself 
should  not  be  held  responsible,  for  the  raw  specula- 
tion in  shares  is  not  mining  ore.  Long  "market 
letters"  ably  written,  inspring  reports,  vague  hints 
of  coming  bonanzas,  weigh  but  little  when  com- 
pared to  the  man  who  sends  the  following  letter  to 
shareholders : 

"We  opened  a  new  ore  shoot  on  the  second  level 
west.  So  far,  the  values  are  strong,  the  bodies 
large,  and  shipments  last  week  were  200  tons,  of  a 
value  of  $30  gross,  leaving  a  net  profit  of  $20  a  ton. 

"We  shall  make  no  extensive  improvements,  un- 
til the  extent  of  this  new  ore  body  has  been  better 
opened  and  its  tonnage  capacity  fully  established." 


ROCKS  IN  THE  ROAD  TO  FORTUNE       233 

This  is  a  statement  of  fact,  the  kind  that  counts, 
in  these  commercial  days.  This  little  mine  may  be 
worked  b}'  a  horse  whim,  it  may  only  have  a  hut 
for  the  shelter  of  its  men,  but  ten  tons  of  fifty  dollar 
ore,  honestly  won,  is  of  more  benefit  to  the  world 
than  the  efforts  of  the  inexperienced,  who,  by  their 
ability  to  cover  facts,  and  thus  winning  the  confi- 
dence of  many,  erect  great  mills,  dig  deep  holes, 
denude  the  mountains  of  timber  to  fill  the  maw  of 
outraged  earth,  drive  to  their  work  in  automobiles, 
write  misleading,  though  it  may  be  legally  worded 
reports  upon  the  progress  of  work,  and  yet  in  the 
end  never  earn  an  honest  dollar  for  all  their  ill-di- 
rected efforts. 

In  1882  the  writer  published  his  maiden  work. 
It  was  only  a  little  book  called  "Years  of  Dishonor 
in  Mining."  There  was  great  excitement  prevail 
ing.  The  Lake  Valley  mines  of  New  Mexico  were 
being  floated  by  the  late  Whittaker  Wright,  oper- 
ating from  Philadelphia.  The  stocks  were  being 
boomed  by  inexperienced  Eastern  brokers.  I  had 
come  from  Tombstone,  Arizona,  seeking  employ- 
ment in  my  line.  During  that  craze,  the  manipula- 
tions of  values  were  the  bait,  misquoted  experts' 
reports,  etc.  The  Leadville  boom  was  on  and  silver 
mining  was  just  crossing  the  line  of  commercialism. 
If  there  were  years  of  dishonor,  from  1880  to  1884 
we  may  class  that  period  as  the  crown  of  them 
all.  The  people  were  told  that  the  ore  bodies 
were  unlimited,  that  the  values  increased  with 
depth    and   that   millions   would    positively   result 


234  ROCKS  IN  THE  ROAD  TO  FORTUNE 

from  mines,  that,  even  to  this  day,  are  non-com- 
mercial. I  have  some  market  letters  written  by 
brokers  at  that  time.  They  are  interesting  reading 
to-day — interesting  because  one  would  think  an 
idiot  wrote  them.  Character  and  honor  had  more 
standing  then  than  they  have  to-day,  men  believed 
more  in  man's  integrity,  the  legal  thief  was  yet  an 
infant,  high  finance  were  words  then  uncoined. 
The  promoters,  and  it  may  be  said  that  New  York 
then  held  the  ablest  of  the  West,  would  bring  old 
venerable  men  into  meetings,  whose  very  appear- 
ance was  indicative  of  honor,  and  these  reprobates 
that  belied  their  manly  personal  appearances,  would 
lie  so  sincerely  that  even  the  most  skeptical  would 
be  convinced.  My  little  book  was  of  a  limited 
issue,  money  was  scarce  with  me,  the  few  volumes 
were  quickly  absorbed  and  the  public  never  knew 
of  its  existence,  but  I  was  a  marked  man.  Hon. 
Stephen  B.  Elkins,  at  that  time  laying  the  founda- 
tion of  his  fortune  in  West  Virginia  coal,  char- 
acterized the  book  as  the  enemy  of  the  "cheese- 
grabbers  of  Wall  street,"  but  its  influence  was 
lost.  I  then  promised  myself  to  some  day  write 
a  book  the  size  of  the  edition  being  such  that 
few  could  buy  them  all  up. 

When  the  crash  came,  as  invariably  ends  these 
crazes,  the  promoter  attributed  the  failure  to  the 
fact  that  he  had  been  deceived.  Not  those  promot- 
ers; they  were  the  wisest  lot  that  the  West  ever 
knew.  The  promoter  of  to-day  is  a  butcher  when 
compared  to  the  handlers  of  the  fine  stilletto  that 


ROCKS  IN  THE  ROAD  TO  FORTUNE       235 

those  men  plunged  into  the  vitals  of  the  public.  But 
we  never  heard  of  an  instance  where  those  wha 
profited  by  the  unsound  promotions  were  willing  to 
return  at  least  the  amount  of  the  heavy  commissions 
they  received,  to  those  who,  believing  in  their  judg- 
ment, had  invested  and  lost  their  money,  so  that  it 
brings  us  down  to  the  point  of  discussion  as  to  the 
necessity  of  a  broker  having  some  practial  knowl- 
edge of  the  mining  industry,  that  he  may  be  able 
to  determine  at  least,  in  a  measure,  whether  or  not 
the  representations  made,  have  any  tangible  basis 
of  truth,  and  this  cannot  be  done  by  any  man  not 
versed  in  the  practical  side  of  gold  and  silver  ex- 
traction from  ores. 

It  has  always  been  a  mystery  to  the  commercial 
miner  why  the  sensible  Eastern  investor  allows 
himself  to  be  deceived  by  a  certain  class  of  men 
who  claim  to  be  mine  promoters,  and  experts  upon 
the  question  of  profitable  mine  investment,  without 
asking  the  broker  or  promoter  to,  over  his  own  sig- 
nature, give  an  outline  of  what  constitutes  his  prac- 
tical experience,  that  the  buyer  may  be  able  to 
judge  of  the  value  of  the  man's  advice.  Their  pre- 
tence is  so  shallow,  their  misrepresentations  and  ig- 
norance of  commercial  mining  so  apparent,  that  it 
is  strange  that  any  man  or  woman  could  be  led  into 
giving  them  a  dollar.  If  there  is  any  one  individual 
in  the  world  thoroughly  detested  by  those  who  dig 
the  actual  product  from  the  hidden  vaults  of  Na- 
ture, it  is  the  so-called  promoter  of  sure-thing  in- 
vestments in  mines,  who,  failing  in  other  avenues 


236  ROCKS  IN  THE  ROAD  TO  FORTUNE 

of  life,  fastens  himself  upon  this  industry  and  pro- 
ceeds to  fatten  at  the  expense  of  those  whom  Na- 
ture created  broad  and  liberal  in  their  views,  who  at 
all  times  desire  to  assist  in  the  development  of  our 
mineral  wealth.  When  the  mistakes  come,  and  the 
loss  is  apparent,  the  general  investor  lays  the  re- 
sponsibility to  the  uncertainty  of  mining.  The 
fault,  however,  lies  with  themselves.  They  should 
have  reasoning  powers  enough  to  realize  that  a  man 
cannot  walk  out  of  a  dry  goods  store,  a  real  estate 
office,  an  advertising  concern,  from  stock  brokers, 
sanctorums,  dealing  in  railroad  securities,  and  put 
up  a  sign  as  a  mine  promoter  and  stand  as  a 
prophet  and  adviser  on  the  intricate  questions  of 
mining  and  have  anything  other  than  blind  luck  to 
guide  him  in  the  selection  of  property  in  one  of  the 
world's  greatest  industries,  where  even  the  most 
experienced  men  hesitate  to  invite  investment,  es- 
pecially in  the  prospect  stage. 

I  can  understand  that  an  electrician  can  well  ad- 
vise on  electrical  ventures,  the  real  estate  agent 
can  place  a  better  valuation  on  a  tract  of  land  than 
a  mining  expert,  but  their  opinions  of  a  mining  ven- 
ture are  of  the  same  value  as  the  opinion  of  the 
miner  on  any  of  their  distinct  specialties,  which  he 
only  knows  superficially. 

The  reader  of  this  book  must  certainly  appreciate 
the  necessity  of  a  knowledge  of  practical  mining  by 
a  broker  to  base  an  intelligent  opinion  upon  the 
value  of  a  prospect  and  subsequently  the  value  of 
the  stock  issued  upon  the  same.     If  the  investor 


ROCKS  IN  THE  ROAD  TO  FORTUNE       237 

would  ask  the  promoter  to  give  him  a  written  state- 
ment of  his  practical  experience,  not  an  oral  state- 
ment, of  his  connection  with  mines,  there  would  be 
some  advantage  to  be  gained  by  those  who  have  to 
trust  their  investments  to  the  broker. 

In  the  last  six  years  vendors  of  mining  shares 
have  sprung  from  almost  every  line  of  life.  They 
have  been  attracted  to  the  sale  of  unsound  pro- 
moted securities  by  the  enormous  commission  that 
has  been  paid.  The  exodus  from  many  walks  of  life 
into  the  sale  of  mining  shares  by  men  who  do  not 
know  if  mineral  grows  upon  rocks  or  in  the  loose 
soil,  has  been  caused  by  the  wild  speculation  in 
Eastern  promoted  mines  that  have  never,  as  yet,  re- 
turned a  dollar,  and  the  chances  are  that  they  never 
will;  but  those  associated  with  unsound  mine  pro- 
motions paid  enormous  commissions,  some  cases 
sixty  per  cent.,  and  thus  attracted  persuasive  talent 
from  other  avenues  of  trade.  One  can  almost  hear 
two  expert  salesmen  say: 

"I  see  that  the  floorwalker  has  left  his  position 
and  is  selling  mining  stocks.  He  has  a  fine  office 
and  is  making  money.  Let's  you  and  I  get  a  type- 
writer and  start  in  the  business." 

This  may  seem  far  fetched,  but  it  is  practically 
the  fact.  New  York  and  the  East  have  created 
more  mining  stock  brokers  from  shoe  clerks,  board 
markers,  worn-out  street  brokers,  real  estate  and 
life  insurance  agents,  than  would  fill  a  volume. 
Every  country  village  has  its  mining  broker,  every 
school  district  some  itinerant  vendor  of  shares,  un- 


238   ROCKS  IN  THE  ROAD  TO  FORTUNE 

til  it  has  jSnally  become  a  joke  and  the  villain  in  the 
melodrama  seeks  to  ruin  the  hero  by  selling  him 
shares  in  a  mine.  Is  it  any  wonder  that  the  res- 
pectable element  of  our  greatest  industry  rebels 
at  the  stain  placed  upon  the  escutcheon  of  mining 
by  these  irresponsible  men? 

It  is  desired  of  the  public  that  before  they  buy 
they  should  ask  the  broker  what  business  he  fol- 
lowed before  entering  the  promotion  of  mines,  and 
how  much  actual  underground  experience  he  per- 
sonally has  enjoyed,  or  how  many  actual  dividend- 
paying  mines  he  has  created,  or  what  reason  he  had 
for  claiming  to  dignify  himself  as  a  representative 
of  the  mining  industry.  The  answer,  if  truthful, 
would  cause  many  to  hesitate.  If  an  untruth  is 
written  he  is  amenable  to  the  law.  Over  night,  gro- 
cerymen,  shoe  salesmen,  life  insurance  agents,  club 
men,  race  track  touts,  bond  clerks  and  physicians 
have  become  mine  agents,  or  established  offices  as 
mining  brokers,  and  their  advice  spread  before  the 
world. 

In  asking  questions  as  to  the  broker's  practical 
experience,  do  not  accept  an  ambiguous  answer.  Let 
the  promoter  tell  you  in  plain  language,  over  his  au- 
tograph signature,  just  the  experience  he  has  had 
and  not  allow  him  to  evade  the  question  by  telling 
you  that  "they  have  good  advice  from  some  of  the 
best  mining  men  in  the  United  States."  I  know  of  a 
young  fledgling  who  is  a  heavy  advertiser  who 
claims  ability  to  give  advice  because  his  father  fre- 
quently   visits   mines.      You    should    know    if   the 


ROCKS  IN  THE  ROAD  TO  FORTUNE       239 

broker,  by  his  own  experience,  is  capable  of  judging 
if  the  advice  is  good. 

It  is  a  known  fact  that  most  of  the  serious  dis- 
appointments of  the  past  ten  years  were  promoted 
by  men  who  never  even  spent  continuously  two 
months  in  the  mines  or  earned  a  hundred  dollars 
in  the  practical  side  of  the  industry.  Some  of  the 
most  prominent  never  drove  a  drill  or  handled  a 
pick  for  wages.  To  these  men  the  prospect  is  a 
mine,  and  that  which  the  commercial  miner  would 
not  consider  worthy  of  venture  is  loudly  heralded 
to  the  public  as  a  bonanza  of  enormous  proportions, 
and  from  the  receipts  the  broker  expects  a  large 
share  for  his  valuable  advice  and  labors  of  promo- 
tion. 

The  question  of  the  experience  of  the  broker  is 
vital,  for  who  would  follow  the  advice  of  a  man 
who  would  say: 

"I  was  formerly  a  life  insurance  agent  and  know 
nothing  of  practical  mining;  I  depend  upon  what 
the  owners  of  the  mines  teJl  me.  T  commenced  to 
sell  mining  stock  because  I  found  it  easier  and  more 
profitable  than  selling  life  insurance,"  or  if  he 
should  say: 

"I  am  not  obliged  to  know  anything  about  the 
practical  side  of  the  industry.  I  read  the  reports 
on  mines  and  I  form  my  judgment.  I  understand 
that  all  prospects  have  a  chance  of  being  mines, 
and  I  sell  properties  on  the  representation  made  by 
others  to  me.  I  have  no  interest  in  the  matter  be- 
yond to  collect  my  commissions.  If  the  mine  fails 
I  am  sorry,  but  I  am  not  an  expert." 


240   ROCKS  IN  THE  ROAD  TO  FORTUNE 

On  the  other  hand,  supposing  the  broker,  in  re- 
ply to  this  question,  says :  "Mining  is  my  specialty. 
I  am  not  only  a  stock  broker,  but  I  make  a  business 
of  thoroughly  investigating  the  profit  possibilities 
of  every  mine  that  comes  to  my  office.  I  have 
worked  in  several  mines,  many  months  at  a  time. 
I  am  closely  associated  with  commercial  miners.  1 
originally  lived  among  them.  I  was  considered  a 
miner.  Some  of  them  I  know  to  be  absolutely  hon- 
est. I  know  that  it  is  only  about  one  out  of  every 
hundred  prospects  that  ultimately  turn  out  to  be 
mines,  consequently  when  I  sell  a  stock  in  a  pros- 
pect the  investor  is  informed  that  it  is  a  venture 
and  that  I  cannot  guarantee  positive  success,  but 
my  experience  with  mining  leads  me  to  believe  that 
this  prospect  is  far  more  valuable  and  further  along 
toward  being  a  dividend-paying  mine  than  the  gen- 
eral run  of  prospects.  There  is  no  value  to  this 
stock  from  an  intrinsic  standpoint,  but  from  a  spec- 
ulative standpoint  there  is  a  value  to  it.  If  you  are 
in  a  position  to  speculate  where  a  little  risk  may 
bring  you  a  very  large  gain,  this  prospect  gives  you 
that  opportunity,  as  it  is  in  the  hands  of  practical 
men,  and  seventy  five  per  cent,  of  every  dollar  in- 
vested in  these  securities  goes  into  actual  under- 
ground development." 

You  would  have  confidence  in  this  man's  asser- 
tions. He  has  not  tried  to  deceive  you;  he  has  told 
you  the  facts.  By  his  practical  experience  in  min- 
ing he  is  able  to  weigh  the  statements  presented  to 
him  by  the  mine  or  prospect  vendor.     The  investor 


ROCKS  IN  THE  ROAD  TO  FORTUNE        241 

is  more  justified  in  taking  a  risk  upon  the  represen- 
tation of  such  a  broker  than  he  would  be  upon  the 
assertions  of  some  boy  who,  perhaps,  was  a  board 
marker  in  a  stoclv  broker's  olfice  and  graduated  to 
an  oak  desk  and  the  ownership  of  a  typewriter. 

This  is  not  an  exaggerated  view,  for  it  is  not  an 
unusual  thing  to  find  mere  youths,  from  twenty-two 
to  twenty-five  years  of  age,  opening  mining  offices, 
sending  out  market  letters,  writing  descriptions  of 
geological  formations,  great  ore  bodies,  continua- 
tions of  mineral  zones  and,  like  sages,  giving  the 
public  information  as  to  the  value  of  mines.  They  use 
the  public  press.  There  is  no  great  reorganization 
plan  undertaken  that  they  do  not  claim  to  have  in- 
formation of  value  and  warn  the  stockholders  to 
write  for  their  market  letters,  which,  when  received, 
is  only  a  rehash  of  what  those  interested  would 
themselves  gladly  give. 

I  v/ould  like  to  see  their  answers  to  the  questions 
here  suggested,  for  the  average  mining  brokers  of 
the  East  are  deplorably  ignorant  of  even  the  needs 
of  a  mine,  and  those  that  are  the  loudest  in  their 
circulars  or  advertising  are  generally  the  least  in- 
formed. I  would  like  to  see  the  answers  to  this 
question: 

How  many  people  have  made  money  under  your 
advice,  money  honestly  won  from  Nature  through 
profitable  ore  extraction?  Not  the  paper  values 
that  the  investor  sees  quoted,  so  long  as  he  himself 
does  not  try  to  sell,  but  old-fashioned  dividends 
from  a  commercially  operated  mine  that  does  not 


242  ROCKS  IN  THE  ROAD  TO  FORTUNE 

want  to  sell  a  little  more  stock  to  perfect  some 
needed  improvement,  but  honest  hard  money  won 
and  paid,  not  upon  a  few  shares  for  the  purpose  of 
attracting  other  buyers,  but  upon  all  the  stock,  such 
as  is  paid  by  the  great  commercial  mines  that  do 
earn  and  pay  dividends.  I  do  not  want  to  hear 
about  what  you  are  going  to  do.  I  want  to  know 
what  profit  you  have  actually  made  and  paid.  How 
many  mines  have  you  advised  people  to  buy  into 
and  how  many  of  them  are  to-day  beyond  the  stock 
selling  period  and  have  settled  down  to  earn  and 
pay? 

The  West  is  filled  with  mining  operators  who 
seek  capital  and  sell  shares  in  both  prospects  and 
mines;  they  are  willing  to  prove  their  right  to  your 
confidence  by  a  manly,  straightforward  statement 
of  their  ability.  There  may  be  Eastern  promoters 
who  have  moved  West,  that  their  residence  near  the 
mountains  may  give  the  impression  that  they  are 
experienced,  but  they  are  the  same  old  "tribe."  In- 
sist that  they  answer  the  questions  requested. 
There  are  no  doubt  many  able  men  in  the  East  who 
are  by  experience  capable  of  forming  sound  con- 
clusions. I  simply  say,  Be  sure  your  broker  is 
experienced.  As  to  the  speculative  trader,  that  is 
a  different  thing.  He  is  treated  in  the  chapter  on 
mining  share  speculation. 

The  broker  dealing  in  mining  shares  upon  either 
the  earning  power  basis,  or  the  development  period, 
where  the  investor  buys  for  a  fair  gain  with  a  fair 
risk,  upon  the  knowledge  that  he  is  informed  as 


ROCKS  IN  THE  ROAD  TO  FORTUNE       243 

to  the  actual  conditions  at  the  mines,  is  not  to  be 
classed  with  the  broker,  who,  is  continually  exciting 
the  public  to  buy,  buy,  buy,  ever  ready  with  excuses 
to  cover  the  reason  for  the  declines,  always  ready 
with  the  advice  to  buy  at  the  low  figure.  The  worth 
of  their  advice  is  shown  in  the  chapter  on  specula- 
tion; their  posing  as  financial  advisers  on  mines  has 
about  as  much  influence  in  creating  confidence  in 
the  commercial  operator,  as  the  Eastern  banker 
would  have  in  the  man  trying  to  sell  securities  of 
the  Electric  Light  Companies  of  New  England,  writ- 
ing upon  paper  headed,  Dick  and  Charlie,  Leadville, 
Colorado,  ore  buyers,  teamsters  and  dealers  in  high 
grade  New  England  Electric  Bonds,  Life  Insurance, 
etc. 

When  one  stops  to  really  consider  the  value  of 
Eastern  advice  on  mine  investment,  it  is  about  on  a 
par  with  the  value  of  the  guarantee  that  certain  pro- 
moters make  to  encourage  conservative  investors. 
There  being  no  way  known  to  science  to  guarantee 
that  nature  will  place  ore  in  the  ground,  the  guar- 
antee is  a  joke.  I  have  seen  men  make  them,  just  to 
get  money  to  keep  Chinamen  from  confiscating  their 
laundry,  or  to  pay  a  pressing  landlord.  Men  who 
make  guarantees  that  mining  stocks  will  pay  divi- 
dends or  your  money  refunded,  need  your  cash  very 
badly  to  satisfy  some  pressing  creditor.  The  same 
applies  to  the  average  vendor  of  Eastern  promoted 
shares,  who  promise  you  the  impossible  to  obtain 
your  subscription. 


CHAPTER  XXI. 

THE  MIXING  COKPORATIOXS. 
CAPITALIZATIONS  AND  WHAT  THEY  MEAN. 

Penny  Stocks  not  Always  the  Best. 

The  author  has  explained  that  this  volume  is 
not  intended  for  those  who  do  know,  or  for  those 
who  are  looking  for  literary  gems  to  add  to  their 
collections  of  such  authors  as  Darwin,  Huxley, 
Spencer,  or  Gibbons.  "Rocks  in  the  Road"  has  been 
written  with  a  view  of  employing  the  four  hundred 
and  seventy  five  commonly  used  words,  with  no  at- 
temp  at  teaching  the  master  minds  of  finance,  or 
those  whose  natural  ability  enable  them  to  live  by 
fooling  others  not  as  well  equipped  mentally.  My 
friends,  who  may  toss  this  work  aside  as  of  no  in- 
terest to  them,  will  not  cause  my  pride  to  in  any 
manner  feel  injured. 

I  am  writing  this  book  in  the  hopes  that  the 
"man  up  the  state,"  who  wants  to  do  a  little  in  min- 
ing, may  reach  out,  take  this  book  from,  perhaps, 
his  slender  library,  read  it,  ask  questions,  and  do 
that  little  mining,  in  a  sensible  manner,  able  to 
draw  deductions  that  may  guide  him  right,  and  thus 
make  him  money,  thereby  cementing  his  friendship 
with  the  Commercial  Miners. 

244 


ROCKS  IN  THE  ROAD  TO  FORTUNE       245 

I  have  speculated  in  stocks,  and  desire  to  con- 
tinue to  do  so,  as  long  as  I  am  a  member  of  any  ex- 
change. I  have  taken  the  money  thus  won,  without 
a  pang  of  regret;  because  I  won  it  from  some 
man  who  would  have  taken  mine.  Exchange  mem- 
bers, do  not  always  know  whose  money  they  take. 
We  huj  or  sell  for  a  profit,  either  way.  We  do  not 
know  who  is  hurt.  The  man  we  win  from,  may  have 
won  from  some  other.  When  we  receive  our  Clear- 
ing House  checks  we  do  not  really  know  who  paid 
us.  It  is  a  fair  business  and  has  no  bearing  upon 
the  ''sure  thing"  operator,  who  says  "Yes"  when  he 
means  "No." 

The  reader  is  plainly  informed  that  the  writer 
deals  in  stocks,  buys  and  sells  prospects.  If  any  in- 
dividual searches  me  out  and  wants  to  do  business 
in  my  line,  he  will  be  received  in  the  fold — but  my 
office  is  for  square  speculators;  it  is  not  a  sanita- 
rium. I  do  not  want  the  accounts  of  those  who  be- 
lieve all  the  trash  they  read  relative  to  sure  invest- 
ments, where  there  is  no  possibility  of  a  loss,  and 
where  ten  dollars  invested  to-day  will  bring  posi- 
tively one  thousand  tomorrow.  Each  state  has 
sound  institutions  where  the  accounts  of  the  feeble 
minded  can  be  carried.  For  my  part  I  do  not  care  to 
be  bothered  with  them. 

As  I  have  stated,  this  book  is  intended  for  those 
who  want  plain  reading,  and  to  know  why  certain 
things  exist. 

There  are  well  written  mining  works  that  elu- 
cidate many  things  that  I  attempt,  but  the  language 
is  too  fine,  it  is  expressed  for  the  few. 


246   ROCKS  IN  THE  ROAD  TO  FORTUNE 

"The  granite  mass  being  discharged  with  such 
force,  that  upon  reaching  its  intended  designation 
placed  the  recipient  in  a  comotose  condition." 

Nearly  everybody  knows  from  this  that  some 
man  was  knocked  out  by  a  granite  rock.  But  does 
everybody  know  it?  As  to  the  length  of  these 
chapters  being  such  that  they  will  not  be  read,  I 
will  take  the  chance.  If  a  man  is  interested  he  will 
read.  The  writer  has  seen  ditch  laborers  diligently 
studying  patent  medicine  literature  in  a  search  of 
a  remedy  for  a.  pain. 

Incorporation  is  the  basis  of  our  material  prog- 
ress; without  it  there  could  be  but  few  great  indus- 
trial undertakings.  If  I  followed  the  usual  proced- 
ure of  financial  writers,  I  would  say:  A  stock  com- 
pany is  an  association  incorporated  under  the  laws 
of  some  State,  or  by  the  direct  act  of  some  legisla- 
ture, for  the  purpose  of  transacting  business.  It  is 
composed  of  a.  number  of  persons  whose  share  in  its 
capital  and  whose  interests  in  its  profits  are  repre- 
sented by  shares  of  stock.  The  company  gives  each 
stockholder  a  certificate  showing  how  many  shares 
he  owns.  In  a  legal  sense  the  corporation  is  a  person, 
with  the  same  powers  that  a  person  possesses  to  act 
and  to  sue.  Yet  the  persons  who  compose  the  cor- 
poration have,  individually,  no  control  over  it  or 
rights  on  the  property  it  may  own.  A  contract  made 
with  a  corporation  is  not  made  with  the  stockhold- 
ers individually.  The  corporation  therefore  is  a  per- 
son without  personality.  Hence  the  aphorism  that 
"corporations  have  no  souls." 


ROCKS  IN  THE  ROAD  TO  FORTUNE       247 

But  I  am  not  going  to  do  that;  instead,  will  try  to 
tell  in  plain  language  just  what  a  mining  corpora- 
tion really  means,  and  its  importance  to  the  small 
investor.  If  they  want  to  study  the  higher  forms  of 
literature  on  corporations,  they  can  read  the  books 
of  Sereno  S.  Piatt,  Henry  Clews,  or  the  works  of 
such  corporation  attorneys  as  James  B.  Dill  and 
John  R.  Dos  Passos. 

In  mining,  a  corporation  simply  means  that  a 
charter  has  been  taken  out  by  three  or  more  men, 
for  the  purpose  of  owning  and  working  a  mine  or 
prospect,  through  corporate  ownership,  instead  of 
individual,  thus  enabling  many  men  to  own  inter- 
ests in  the  prospect  or  mine,  through  possession  of  a 
stock  certificate.  If  the  individual  held  the  prop- 
erty and  wanted  to  sell  a  one-one  hundredth  inter- 
est, he  would  have  to  make  a  deed,  and  that  deed  be 
placed  of  record  otherwise,  under  incorporation,  the 
owner  deeds  to  the  Company,  and  the  interest  can 
then  be  represented  by  shares,  yet  the  title  is  as  safe 
as  though  the  deed  had  passed  to  the  small  interest 
holder.  It  is  simply  a  form.  If  you  owned  an  apple 
and  cut  it  into  a  thousand  pieces  each  piece  would 
represent  a  one  one  thousandth  part  of  the  apple. 

The  amount  of  capitalization  does  not  affect  the 
intrinsic  value  of  the  prospect  or  the  mine.  Some 
Companies  incorporate  for  many  "millions"  but  the 
sounder  operators  favor  small  amounts.  For  illus- 
tration: A  prospector  has  opened  a  lode  or  sliver, 
he  has  gone  as  far  as  his  personal  means  will  admit, 
and  desires  the  co-operation  of  capital  to  prosecute 
further  development. 


248  ROCKS  IN  THE  ROAD  TO  FORTUNE 

He,  and  a  few  associates,  form  a  corporation 
under  some  law,  called, — say  the  Mineral  Hill  Mine 
Co.,  capital  stock,  |1,000,000;  divided  into  1,000,000 
shares  par  value  of  $1.00  each.  To  this  Company, 
he  deeds  his  prospect,  and  in  lieu  of  cash  he  accepts 
the  11,000,000  of  capital  stock,  less  the  amount  held 
by  the  incorporators,  which  may  be  four  or  five 
shares.  This  enables  him  to  pay  up  the  entire  capi- 
ta^l  in  full,  by  property  purchased,  consequently  he 
classes  his  stock  fully  paid,  meaning  that  the  buyer, 
even  though  he  only  pay  five  cents  per  share,  cannot 
be  called  upon,  in  any  event,  for  further  payments. 
He  further  stamps  the  stock  non-assessable,  which 
means  that  tlie  holder  cannot  be  assessed  in  event 
the  Company  should  need  money.  The  only  way 
the  shareholder  can  be  approached  is  by  asking  him 
to  make  a  voluntary  contribution,  which,  however, 
is  not  compulsory. 

The  stock  is  now  the  property  of  the  former 
owner  of  the  prospect,  and  he  generally  contributes 
a  part  of  his  1,000,000  shares  to  the  treasury  for  the 
purpose  of  sale.  I  have  used  the  |1,000,000  illustra- 
tion simply  for  argument.  There  is  no  set  amount 
for  capitalizations.  It  may  be  |20,000,000,  but  the 
intrinsic  value  is  only  the  worth  of  the  prop- 
erty covered.  The  amount  of  the  capitalization  is 
often  set  by  sentiment,  opinion  or  style.  A  prospect 
not  upon  a  commercial  basis  is  simply  prospective 
as  to  value;  some  wild  dreamers  may  say  this  pros- 
pect is  going  to  be  worth  |25,000,000,  and  he  causes 
that  capitalization  to  be  placed  upon  it.     Others 


ROCKS  IN  THE  ROAD  TO  FORTUNE        249 

have  a  leaning  to  |10,000,000,  some  |5,000,000;  it 
depends  upon  ttie  actual  experience  of  the  promo- 
ters and  their  intent. 

The  writer  has  known  prospectors  who  had  an 
ideal  figure;  they  never  dreamed  of  more  or  less.  A 
hole  in  the  ground  was  to  them  worth  their  ideal. 
Some  men  want  |10,000  some  |50,000,  others  |100,- 
000,  they  are  satisfied  with  the  amount,  and  it  sel- 
dom weighs  with  them,  that  their  prospect  may  be 
worth  more  or  less;  their  ideal  figures  in  all  sales, 
be  it  for  cash,  or  on  bond  and  lease,  or  through  in- 
corporation; so  it  is  with  mining  capitalizations;  the 
actual  value  is  not  represented.  It  is  simply  the 
ideal  of  the  incorporators. 

The  commercial  miner  reasons  that  while  the 
prospect  is  in  a  non-commercial  stage,  and  is  draw- 
ing upon  its  owners  for  develox)ment,  that  the  capi- 
talization should  be  very  low,  from  |50,000  to  |100,- 
000,  the  increase  following  the  increase  in  value,  as 
development  progresses,  and  the  shares  are  usually 
sold  at  nearly  the  rate  demanded  to  accomplish  cer- 
tain work. 

The  author  was  present  at  a  meeting  of  gentle- 
men composed  of  advertising  agents,  physicians, 
real  estate  operators,  brokers  and  merchants.  They 
were  discussing  over  the  capitalization  to  be  placed 
upon  a  non-commercial  prospect.  One  suggested 
that  the  figures  be  set  at  |1,000,000  and  the  stock 
sold  at  twenty-five  cents  per  share,  which,  in  itself, 
would  have  been  at  the  rate  of  $250,000,  figuring 
the  par  value  at  fl.OO.      Another  said  "make  it 


250   ROCKS  IX  THE  ROAD  TO  FORTUNE 

$5,000,000,  that  is  the  popular  figure  now,  and  be- 
sides we  cannot  sell  the  stock  at  twenty-five  cents 
per  share,  we  will  have  to  sell  the  first  at  ten  cents, 
and  work  it  up  to  twenty-five  cents  by  five  cent 
stages.  This  was  finally  agreed  upon  and  the  stock 
offered  at  ten  cents,  or  at  the  rate  of  |500,000  for 
the  non-commercial  prospect.  Here  simply  the  ex- 
pression at  an  ideal  raised  the  price  |250,000  over 
the  first  statement. 

Promoters  reason — that  is,  those  in  the  business 
of  selling  shares  rather  than  with  the  intent  of 
mining  commercially — tlie  more  shares  they  can 
offer  for  a  few  cents  the  more  pennies  they  can  se- 
duce from  the  investor.  They  do  not  figure  the  in- 
trinsic value  of  anything;  they  delight  in  saying, 
that  for  ten  dollars  you  can  buy  1,000  shares  of  this 
stock,  and  as  the  par  value  is  fl.OO  per  share  you 
are  receiving  |1,000  of  stock  for  ten  dollars,  the  fact 
that  a  million  of  the  shares  may  be  commercially 
worthless,  does  not  occur  to  them.  It  is  better  to 
own  ten  shares,  for  which  you  pay  ten  dollars  and 
have  them  represent  an  ownership  in  something 
sound,  rather  then  hold  a  million  shares  in  a  worth- 
less shaft  that  is  not  even  salable  for  post  holes. 

Some  men  claim  that  the  average  buyer  likes  to 
say,  "I  own  1,000  shares  in  a  mining  company" 
rather  then  say  "I  own  ten  shares;"  he  feels  richer, 
when  in  reality,  by  the  very  order  of  the  unsound- 
ness of  inflated  figures  he  is  doomed  to  failure 
and  loss,  consequently  the  capitalization  only  means 
the  opinion  of  the  promoter.     The  intrinsic  value 


ROCKS  IN  THE  ROAD  TO  FORTUNE       251 

would  be  just  as  large  if  the  sum  was  fixed  at 
1100,000  instead  of  |10,000,000.  We  all  have  ex- 
perience in  modern  finance,  several  times  I  have 
been  affected  by  inflated  values  placed  upon  pros- 
pects that  I  have  owned;  the  result  was  always  un- 
satisfactory, except  to  the  agent,  with  whom  the 
business  was  transacted.  Never  again  will  the 
writer  be  associated  with  a  prospect  capitalized  at 
high  figures.  It  does  not  work  out  right  at  the  mine. 
I  believe  further,  that  within  two  years  there  will 
be  an  end  to  even  |1, 000,000  corporations,  based 
upon  prospects;  mines  will  be  capitalized  at  many 
millions,  but  not  prospects,  not  at  least,  until  they 
prove  to  be  mines,  for  the  retrospect  shows  a  field 
strewn  with  dead  and  crippled  companies  that 
might  have  been  successful  had  there  been  less  cap- 
italization, for  where  a  mining  company  has  many 
millions  of  shares  there  is  a  recklessness  that  fol- 
lows their  sale,  and  gifts  to  directors,  that  does  not 
follow  the  lower  capitalization.  As  an  example — 
a  man  having  in  his  pocket  one  hundred  pennies 
spends  them  more  recklessly  and  without  the 
thought  that  he  bestows  upon  a  full  dollar,  or  the 
method  of  its  disposal.  There  are  many  prospects 
killed  by  these  heavy  capitalizations  that  would 
have  proven  producers  had  the  corporation  been  a 
close  one,  and  the  price  set  upon  its  shares  substan- 
tial. 

In  these  penny  stocks  there  is  too  much  of  the 
gamble,  too  much  of  the  thought,  "Oh,  it  is  only  a 
few  cents  per  share,"  when  in  reality  it  is  considera- 


252  ROCKS  IN  THE  ROAD  TO  FORTUNE 

ble  that  is  lost,  and  the  loss  does  not  benefit  the  in- 
dustry, for  generally,  in  these  high  capitaliza- 
tions, very  little  of  the  money  is  expended  in  actual 
underground  work;  most  of  it  going  for  commis- 
sions, or  general  expenses. 

The  writer  has  made  a  study  of  these  penny  pro- 
motions and  it  is  found  that  the  percentage  of  them, 
that,  really,  in  the  end,  become  commercial  mines, 
is  so  small  as  not  to  be  worthy  of  citation.  In  the  past 
five  years  there  has  not  been  three  |1,000,000  capital- 
ization which  were  started  at  ten  cents  per  share  or 
at  $100,000  prospect  valuation,  that  to-day  give 
reasonable  evidence  of  proving  of  commercial  value. 
But  within  the  last  ten  years  there  has  not,  to  my 
knowledge,  been  even  two  of  the  corporations  capi- 
talized at  over  |1, 000,000,  and  sold  on  the  penny 
basis,  that  has  resulted  in  a  strong  dividend  paying 
mine,  the  kind  that  is  now  paying. 

The  reader  is  earnestl}^  requested  not  to  class 
commercial  mining  with  the  results  that  follow  the 
penny  flotations,  for  it  can  be  shown  where  heavy 
and  steady  profits  are  won  by  the  proper  applica- 
tion of  a  very  small  amount  of  capital;  and  if  we 
take  the  question  of  copper  mines  into  consideration 
it  will  be  seen  that  the  first  capitalizations  of  the 
Great  Lake  properties,  upon  which  their  success 
was  won,  was  upon  very  limited  capital.  The  in- 
flations of  values  coming  after,  the  management 
under  the  low  capital  basis,  had  made  the  great  suc- 
cess; and  to  bear  out  this  statement  I  herewith  pre- 
sent a  list  showing  the  capitalizations  and  the  divi- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       253 

dends  paid  to-date  by  gold,  silver,  lead  and  copper 
mines,  based  upon  reasonable  capital  consistent 
with  their  worth. 

Name  of  Mine.  Capital.  Dividends. 

Alaska  Mexican |1,000,000  $     1,806,000 

Alaska  Tredwell 5,000,000  9,975,000 

Alaska  United  1,000,000  333,350 

Beck  Tunnel 100,000  615,000 

Arizona  Copper 3,775,000  3,368,000 

Bald  Butte 250,000  1,354,000 

Boston  and  Montana....  3,750,000  49,225,000 

Bunker  Hill 3,000,000  9,876,000 

Calumet  and  Arizona....  2,500,000  9,300,000 

Central  Eureka 400,000  778,000 

Con-Mercur   1,000,000  1,225,000 

Daly   West 3,600,000  5,877,000 

De  Lamar 400,000  2,926,000 

Gemini  Keystone 500,000  1,950,000 

Grand  Central 250,000  1,333,000 

Hecla    250,000  1,460,000 

Portland   3,000,000  7,747,000 

Calumet  and  Hecla 2,500,000  105,900,000 

It  is  not  necessary  to  make  further  reference,  as 
to  the  results;  the  list  could  be  extended  for  pages, 
even  showing  privately  operated  commercial  mines 
that  employ  less  than  |50,000  in  capital.  When  a 
man  handles  real  money  he  is  careful  with  it;  when 
one  is  handling  paper  values  he  is  reckless. 

The  author  does  not  combat  the  system  of  incor- 
poration,  he   strives   against  unsound  promotions, 


254      ROCKS  IN   THE  ROAD   TO  FORTUNE 

and  it  is  his  belief  that  prospects  capitalized  at 
many  millions  of  dollars  and  sold  at  a  few  cents  per 
share  are  not  conducive  to  the  desired  results, 
which  are  that  more  precious  metals  be  profitably 
w^on,  thus  keeping  alive  a  healthy  incentive  to  in- 
vest in  our  mineral  resources. 

Mining  should  never  be  prosecuted  by  individuals. 
The  capital  expenditures  to  make  possible  the  enor- 
mous profits  attributed  to  mining  are  greater  than 
individual  fortunes  can  stand.  Incorporation  alone 
is  the  proper  way,  for  then  the  aggregate  invest- 
ments of  the  many  make  possible  success,  and  in 
mining  companies  honestly  managed  the  dollar  of 
the  man  of  moderate  means  is  equal  with  the  dollar 
of  the  millionaire.  Both  serve  to  the  same  end,  and 
when  success  follows,  then  the  division  of  the  profits 
reaches  both  firesides  alike.  It  may  surprise  the 
reader,  when  the  assertion  is  made,  that  the  aggre- 
gate small  investments  have  done  more  to  make  our 
dividend  paying  mines  then  has  the  capital  of  the 
men  of  larger  means,  but  in  nearly  all  successful 
ventures  there  has  been  an  absence  of  sensation- 
alism in  their  promotions,  such  as  is  referred  to 
through  the  first  fifteen  chapters  of  this  volume. 

If  it  were  not  for  the  incorporations  of  mines  poor 
men  would  be  debarred  from  participating  in  the 
profits.  The  question  that  confronts  the  investor 
is  the  honesty  of  the  management,  the  basis  upon 
which  success  is  expected.  Those  being  favorable 
the  problem  is,  "Am  I  being  invited  into  this  ven- 
ture upon  a  basis  of  equality?" 


ROCKS  IN  THE  ROAD  TO  FORTUNE       255 

The  investor  may  go  a  long  way  towards  creating 
a  sounder  system  of  mine  promotion  by  reasoning 
before  he  invests  and  by  following  the  suggestion 
made  in  the  chapter  on  "Excuses  that  follow  fail- 
ure," that  is,  by  refusing  to  send  money  until  the 
total  sum  needed  is  subscribed  and  he  is  informed 
as  to  his  position  relative  to  a  profit  distribution  in 
event  of  success. 

When  reading  a  sensational  advertisement  offer- 
ing shares  at  a  few  cents,  study  the  capitalization; 
you  may  find  that  the  advertiser  does  not  state  the 
amount  of  capitalization,  but  if  you  can  find  out  the 
total  amount  and  know  the  number  of  shares  figure 
it  out.  If  the  shares  are  ten  cents  each  and  there 
are  5,000,000  shares,  that  means  that,  as  far  as  you 
are  concerned,  you  are  paying  at  the  rate  of  |500,000 
for  the  prospect.     Then  write  the  following  letter: 

"I  noticed  that  figuring  the  total  capitalization  I 
am  paying  at  the  rate  of  |500,000  for  my  shares;  at 
this  price  the  mine  should  be  upon  a  paying  basis  or 
almost  at  that  desirable  period.  What  is  the  exact 
amount  you  paid  in  cash  for  this  property?  and 
have  you  paid  the  full  amount  due  or  is  there  some 
contract  outstanding  covering  the  purchase  price? 
What  is  the  cash  value  of  the  present  equipment? 
How  many  feet  of  actual  work  has  been  done?  How 
much  ore  is  actually  in  sight,  ready  for  shipment? 
How  much  cash  commission  do  you  extract  from 
moneys  sent  you  for  stock?  and  how  many  pro- 
moters' shares  were  given  you  as  a  bonus?" 

Then  close  your  pocketbook  and  await  the  reply. 


256   ROCKS  IN  THE  ROAD  TO  FORTUNE 

There  is  one  more  point  relative  to  mining  incor- 
porations that  may  be  of  interest,  and  that  is  the 
directors.  Considerable  money  is  expended  by  pub- 
licity promoters  in  displaying  in  their  advertise- 
ments the  names  of  their  directors.  What  are  di- 
rectors? It  is  the  body  that  directs  the  operations 
of  the  corporation.  If  they  do  not  know^  how  to  di- 
rect then  failure  follows.  Merchants,  lawyers,  doc- 
tors, inventors,  and  bankers,  make,  no  doubt,  good 
directors  for  a  bank,  when  they  pass  upon  loans,  etc. 
The  same  men  may  operate  a  railroad,  where  what 
they  desire  to  do  is  a  well-known  fact,  as  is  shown 
in  other  cases,  and  they  deal  with  what  they  can  see. 
But  in  prospecting  or  commercial  mining  they  are 
not  at  all  times  able  to  see,  and  such  a  board  of  di- 
rectors are,  as  far  as  mining  is  concerned,  almost 
worthless  except  from  the  point  of  organization  and 
an  honest  division  of  the  profits  among  the  stock- 
holders when  the  profits  are  won;  but  as  far  as  the 
ability  of  a  board  of  directors,  composed  of  Govern- 
ors, Lawyers,  Bankers,  Eeal  Estate  Agents,  Doctors 
and  Railroad  Officials,  to  turn  a  prospect  into  a  mine 
is  concerned,  they  are  powerless.  It  takes  miners  to 
do  that  work,  and  miners  cannot,  themselves,  make 
mines  unless  nature  first  placed  the  ore  in  the 
ground.  A  good  board  of  directors  can  add  caste  to 
the  undertaking,  they  can  divide  the  money  if  it  is 
given  them  to  divide,  but  all  the  directors  in  the 
world  cannot  put  ore  in  the  ground;  so  when  you  are 
considering  a  mining  venture  look  to  the  evidence 
of  mine  value  as  the  principal  thing  to  consider: 


ROCKS  IN  THE  ROAD  TO  FORTUNE       267 

study  the  property  and  not  the  directors,  they  can- 
not win  from  nature.  It  takes  too  many  years  of 
wide  experience  to  even  stand  a  reasonable  chance. 

If  the  writer  desired  to  give  the  names  of  certain 
men  who  have  been  directors  in  non-profitable  min- 
ing ventures  the  reader  would  realize  that  the  high- 
est reputation  in  our  country  has  been  smeared,  a 
little,  by  the  foolish  belief  that  names  could  make 
a  mine. 

Inexperienced  boards  work  another  injury  to  the 
commercial  side;  generally  there  is  some  one  among 
them  who  has  a  son  who  is  "just  dying  to  go  West" 
or  a  young  friend  who  needs  work,  or  perhaps  a 
fledgling  from  some  college  where  a  course  in  min- 
ing is  a  part  of  their  education.  These  men  are  sent 
to  take  charge  of  mine  operations,  that  require 
years  of  experience,  to  enable  a  man  to  know  how  to 
handle  men,  machinery,  or  open  ore,  even  after  you 
are  so  fortunate  as  to  find  it.  The  results  are  inev- 
itable and  much  of  the  loss  is  truthfully  attributed 
to  this  class  of  management. 

A  good  board  of  directors  is  of  course  better  than 
a  poor  one,  but  unless  they  have  clean,  practical 
men  in  charge  at  the  mines  they  are  seldom  success- 
ful; unless  by  chance  they  stumble  upon  a  bonanza 
which  will  bear  out  the  idea  of  the  late  Senator, 
Jerome  B.  Chaffee,  who  is  credited  as  saying,  "a 
good  mine  will  stand  any  kind  of  management." 
But  the  writer  was  personally  acquainted  with  Mr. 
Chaffee — and  from  the  way  he  made  me  walk  around 
at  the  Little  Pittsburg  mines  I  am  led  to  believe  he 
never  made  such  a  remark. 


258  ROCKS  IN  THE  ROAD  TO  FORTUNE 

If  the  investor  is  impressed  with  the  influential 
names  in  a  directory  write  the  following  letter  to 
one  or  two  of  them: 

"I  notice  you  are  a  director  in  a  mining  company 
in  which  I  am  thinking  of  making  a  small  invest- 
ment; do  you  know  anything  about  the  property  from 
personal  investigation  on  the  ground?  Do  you  know 
sufl&cient  about  the  practical  side  of  mining  to  pass 
a  sound  opinion  upon  this  property  or  what  you 
saw?  Is  there  any  commercial  ore  in  sight?  If 
there  is  not,  then  upon  what  grounds  do  you  place  a 
valuation,  such  as  the  selling  price  the  stock  repre- 
sents? Am  I  right  in  the  belief  that  a  prospect  re- 
mains a  prospect  until  it  actually  becomes  a  paying 
mine?  Do  you  know  that  the  title  is  good,  and  how 
much  commission  and  promoters'  stock  is  given  the 
fiscal  agents?  Did  you  pay  hard  cash  for  your  stock 
the  same  as  I  may  be  called  upon  to  do?  I  ask  these 
pointed  questions  because  I  am  impressed  with  the 
fact  that  you  are  a  director,  and  once  before  I  went 
in  on  the  strength  of  some  big  name;  then  when  the 
crash  came  the  directors  said  they  only  went  on  the 
board  to  accommodate  a  friend;  that  they  really  did 
not  know  anything  about  the  mine,  all  of  which  did 
not  save  me  the  loss  I  would  have  saved  had  I 
known  the  truth.  Therefore  I  ask  you  these  plain 
questions,  which  I  understand  are  not  out  of  place, 
and  are  such  that  a  director  should  answer.  Being 
a  director  you  should,  and  no  doubt  do,  know  all 
about  these  vital  points  so  interesting  to  the  inves- 
tor." 


ROCKS  IN  THE  ROAD  TO  FORTUNE       259 

Let  the  investor  write  this  letter  to  one  or  two  of 
the  most  widely  known  directors.  It  may  do  you 
good;  it  may  also  cause  honest,  though  foolish  men, 
who  allow  their  names  to  be  used,  to  hesitate  a  lit- 
tle. If  a  respectable  citizen  answers  these  questions 
satisfactorily  over  his  own  signature,  not  his  secre- 
tary's, then  it  is  reasonably  safe  to  go  in. 


CHAPTER   XXII. 
THE  POOR  MAN  AS  A  MINE  INVESTOR. 

Early  in  life  I  commenced  to  serve  my  appren- 
ticeship in  the  sad  school  of  experience  with  mine 
promoters.  I  drifted  along  in  the  current  of  over 
capitalization,  unwarranted  estimates  of  value,  and 
ambiguous  reports  by  experts  that  meant  nothing, 
but  I  was  happy  in  my  ignorance.  I  was  told  that 
the  ore  bodies  exposed  upon  the  surface  would  go 
down  thousands  of  feet,  that  values  would  increase 
with  depth.  A  retrospect  makes  me  acknowledge 
that  of  all  the  fools  that  believe  this  trash,  I  was 
perhaps  the  biggest.  In  those  days  any  prospect 
was  considered  to  be  a  mine  and  was  capitalized 
upon  the  assumption  that  it  was.  The  fact  that 
ores  lay  in  shoots,  some  large,  some  small,  was  not 
as  well  understood  then  as  now.  Mining  was  sim- 
ply,—"find  a  vein  and  become  rich." 

When  I  had  passed  through  the  puppyhood  of 
mine  experience  and  my  eyes  opened,  at  first  feebly, 
I  commenced  to  question  the  right  to  make  exagger- 
ated statements  for  the  purpose  of  encouraging 
men  to  invest  in  prospects  upon  unsound  estimates. 
The  older  and  wiser  in  the  world  affairs  labored 
with  me  and  impressed  upon  me  that  if  we  followed 

260 


ROCKS  IN  THE  ROAD  TO  FORTUNE       261 

the  plan  of  a  statement  of  facts,  the  prospect  would 
show  up  so  poor  that  people  would  not  invest,  and 
by  so  doing  I  would  be  taking  from  the  poor  man 
his  only  opportunity  to  grow  rich  with  limited  in- 
vestment. 

It  is  admitted  that,  without  prospects,  there  will 
be  no  mines,  but  it  is  asserted  that  the  risks  that 
follow  a  prospect  should  be  plainly  stated,  that  the 
poor  man  may  form  his  own  opinion  of  the  risks, 
and  himself  determine  if  he  is  able  to  take  them, 
not  by  misleading  statements  create  the  impression 
that  there  is  practically  no  risk,  and  to  encourage 
this  belief  to  the  extent  that  he  may  mortgage  his 
home.  It  is  needless  to  say  that  men  and  women  do 
not  do  this,  because  they  do.  In  March,  1882,  I  was 
called  to  Philadelphia  to  deliver  an  address  at  the 
Young  Men's  Christian  Association  Hall,  on  Tomb- 
stone, Ariz.,  a  silver  camp  then  in  the  height  of  its 
glory.  After  the  address  I  met  many  persons  inter- 
ested in  mining,  all  eager  to  discuss  the  subject  and 
ask  questions  about  some  section  in  which  they 
were  interested.  Among  them  was  an  aged  man, 
whom  I  learned  was  in  a  position  bordering  upon 
destitution.  This  gentleman  had  been  a  prosperous 
merchant;  first  he  invested  a  thousand  dollars,  then 
the  usual  excitable  literature  found  its  way  to  his 
desk,  then  further  investments,  finally  he  mort- 
gaged his  home,  the  property  proved  worthless,  the 
home  was  lost  and  with  broken  spirit  he  drifted 
down  the  stream.  Men  who  do  not  meet  the  masses 
do  not  realize  the    sorrow  a    mis-statement  often 


262  ROCKS  IN  THE  ROAD  TO  FORTUNE 

brings.    This  is  the  other  side  of  misrepresentation. 

The  poor  man  is  naturally  anxious  to  believe  the 
statements  made,  he  is  a  willing  victim,  his  desire 
to  improve  his  position  makes  him  so.  Six-tenths  of 
all  the  buyers  of  sensationally  promoted  issues  are 
poor  men.  It  is  nothing  to  the  promoter's  credit  to 
obtain  the  money  of  the  inexperienced,  he  is  not 
equipped  in  the  world's  affairs  equal  to  the  man  who 
seeks  his  dollars.  It  is  not  the  excitement  of  bag- 
ging game,  that  carries  danger  in  the  pursuit. 

The  wage-earner,  chained  to  his  occupation,  has 
not  the  opportunities  of  ameliorating  his  condition 
that  clerks,  traveling  salesmen,  etc.,  enjoy.  His 
money  comes  hard,  he  hoards  his  small  savings  in 
banks,  and  after  years  of  toil,  bowed  down  with  age, 
he  finds  himself  the  possessor  of  perhaps  two  or 
three  thousand  dollars.  His  capital,  even  though  he 
is  broad  enough  to  appreciate  that  there  are  great 
opportunities,  limits  him  from  amassing  rapid 
wealth  through  any  of  the  avenues  of  mercantile 
advancements.  If  he  invests  it  is  with  the  view  of 
bettering  his  condition.  He  reads,  he  believes;  he 
cannot  read  between  the  lines  as  does  the  more  ex- 
perienced; consequently  he  is  more  susceptible. 

Let  me  say,  advisedly,  that  the  wage-earner  runs 
a  great  risk  in  his  general  mine  investments,  be- 
cause he  is  the  object  of  the  alluring  advertisements 
wherein  his  cupidity  is  excited  by  unscrupulous 
men,  who,  by  well  worded  appeals,  practically  tell 
him  that  failure  is  impossible  and  disarm  him  of 
his  natural  caution  which  would  tell  him  to  reason. 


ROCKS  IN  THE  ROAD  TO  FORTUNE       263 

The  writer  says  that  mining  is  the  best  avenue  for 
the  poor  man  and  his  limited  means;  but  it  must  be 
in  the  commercial  side,  where  the  truth  is  told, 
where  the  value  placed  upon  prospects  or  mine  is  a 
fair  one. 

A  man  saving  |300  a  year  has  but  one  avenue  in 
which  to  embark  with  a  reasonable  feeling  of  cer- 
tainty that  his  investments  will  give  him  a  compe- 
tency— that  avenue  is  Mining,  which  gives  the  one 
opportunity  in  the  world  of  becoming  rich  by  utiliz- 
ing a  small  amount  of  money;  there  is  no  other  way 
of  realizing  more  than  simple  interest,  but  it  is  not 
the  best  avenue  if  the  investment  is  made  with  inex- 
perienced men,  upon  unreasonable  valuations  and 
unsound  promotions.  Such  a  thing  as  absolute 
safety  does  not  exist,  except  in  a  measure  through 
low  interest  bearing  bonds  or  highly  productive  real 
estate,  but  a  well  managed,  ore  proven  mine,  sold 
upon  a  reasonable  capitalization  of  from  $50,000  to 
1500,000  is  as  near  safe  as  any  semi-speculative  se- 
curity can  be. 

We  know  that  every  man  is  willing  to  venture  a 
little  to  reap  a  large  profit,  but  he  wants  to  be  told 
the  truth,  then  he  invests  guardedly;  he  is  safe  even 
though  he  does  not  succeed — men  of  limited  means 
often  win  fortunes  from  mines,  they  see  the  value 
of  their  share  rise,  and  they  hold  and  hold,  blind  to 
the  only  safe  way  to  reach  success  through  any 
stock  that  has  had  an  abnormal  advance  and  which 
some  speculator  desires  to  buy,  that  is  to  sell,  reap 
a  profit,  then  reason  on  a  new  investment  and  risk 


264   ROCKS  IN  THE  ROAD  TO  FORTUNE 

a  part  of  the  earnings  of  the  other.  Let  the  stock 
alone  where  the  vendor  tells  you  there  is  no  risk, 
for  a  man  who  will  ask  yon  to  buy  any  large  amount 
of  speculative  issues  upon  the  assurance  that  it  is 
without  the  attendant  risks  of  life  or  investment,  is 
either  a  knave  or  a  fool. 

If  the  man  of  moderate  means  will  take  a  pencil, 
and  figure  out  the  cash  valuation  placed  upon  many 
prospects,  he  will  study  over  the  investment,  then 
if  he  goes  into  the  venture,  it  is  after  his  own  reason- 
ing, keeping  in  mind  what  has  been  written,  as  to 
the  value  of  the  prospect. 

The  intention  of  the  writer  is  to  encourage  the  in- 
vestment in  the  prospect  stage,  but  to  eliminate  the 
vendor  of  shares  who  boldly  says:  ''This  is  a  mine," 
when  it  is  only  a  prospect,  and  sells  it  upon  a  valua- 
tion that  only  mines  of  intrinsic  earning  power  com- 
mand. Among  men,  who  are  known  as  commercial 
operators,  it  is  not  believed  that  the  man  of  mod- 
erate means  should  be  called  upon  to  pay  a  produc- 
ing mine  price  before  it  is  actually  a  mine. 

A  poor  man  should  buy  the  partially  developed 
mine,  then  only  to  the  extent  of  his  means,  never  to 
the  extent  where  the  happiness  of  his  family  would 
be  jeopardized  in  event  of  disappointment.  Well 
opened  prospects  placed  upon  a  valuation  of  from 
fifty  thousand  to  one  hundred  thousand  dollars  are 
the  prime  issues  for  the  man  of  limited  means,  for 
when  they  pass  to  the  stage  of  mines  the  profits  are 
heavy  and  deserved. 


I 


ROCKS  IN  THE  ROAD  TO  FORTUNE       265 

The  seeds  of  fortune  in  mining  are  sown  by  judi- 
cious investment  in  enterprises  that  have  been  de- 
veloped to  a  point  where  the  mine  is  almost  ready  to 
pass  to  a  dividend-paying  basis.  Fortunes  are  not 
made  by  small  investments  after  a  mine  passes 
upon  a  dividend-paying  basis,  for  then  the  stock  is 
held  at  high  figures;  but  a  prospect  without  com- 
mercial ore  is  worthless. 

The  poor  man  is  naturally  suspicious,  he  reasons 
from  the  defensive  side,  and  the  first  question  he 
asks,  is  why  a  good  thing  is  brought  to  the  east. 
Suave  promoters  have  a  ready  answer,  but  the  cold 
truth  is,  that,  proven  good  things  are  not  brought 
to  the  eastern  investor  except  upon  a  valuation,  jus- 
tified by  the  production  or  ore  showing  of  the  mine. 


CHAPTER   XXIII. 

SPECULATION  IN  PEOSPECT  SHARES  IS  NOT 
BENEFICIAL  TO  THE  INDUSTRY. 

It  is  the  desire  of  all  persons  connected  with 
commercial  mining  that  every  dollar,  intended  by 
its  owner  for  actual  mine  operations,  shall  be  so 
applied  and  no  subterfuges  used  to  divert  the  same 
into  other  channels.  It  is  either  intended  that  the 
influence  of  the  dollar  shall  be  directed  to  opening 
ground,  or  for  speculation,  which  is  remote  from 
actual  mining.  If  the  former,  then  the  intention 
is  to  dig  into  the  earth ;  if  the  latter,  then  it  is  not  a 
"mining  investment."  The  right  to  gamble — to  bet 
on  the  volume  of  a  fall  of  snow  or  rain,  horses,  or 
the  rise  and  fall  of  quotations  made  by  manipu- 
lators— irrespective  of  the  intrinsic  worth  of  the 
property  covered  by  the  shares — is  not  under  dis- 
cussion. The  writer  asserts  that  the  money  in- 
tended to  open  prospects  should  be  actually  so  ap- 
plied, otherwise  there  will  soon  be  only  the  skeleton 
of  this  industry  left. 

As  stated  in  previous  chapters,  it  is  necessary 
that  new  capital  be  obtained  to  increase  production; 
the  capital  at  present  involved  being  required  to 
sustain  the  present  output.     The  vast  majority  of 

266 


ROCKS  IN  THE  ROAD  TO  FORTUNE  267 

people  who  buy  shares  on  "mushroom"  exchanges, 
or  "curbs,"  believe — notwithstanding  the  argu- 
ments of  the  promoter  to  the  contrary — that  they 
are  placing  their  money  where  it  will  be  made  a 
part  of  other  moneys  needed  in  the  proper  develop- 
ment of  prospects,  that  dividends  may  finally  be 
paid.  There  are  men  w  ho  make  a  business  of  specu- 
lating in  shares,  irrespective  of  any  value.  The 
rise  and  fall  of  quotations  is  their  thermometer. 
Many  a  man  speculates  in  stocks  issued  upon  mines 
and  railroads  who  does  not  know  where  they  are 
located.  But  this  is  not  the  case  with  the  general 
run  of  investors  to  whom  mining  appeals;  the  aver- 
age buyer  believes  that  a  certificate  represents  a 
value,  which  the  use  of  his  money  has  increased. 

Consequently,  any  form  of  mine  or  prospect  pro- 
motion that  does  not  do  that,  which  the  investor 
believes  will  be  done  with  his  money,  is  open  to 
discussion  as  to  its  benefits,  the  same  as  the  results 
of  the  operations  of  the  Forty  Per-Cent  Commis- 
sion Agent,  the  payment  of  unsound  dividends,  or 
fictitious  increasing  of  prices — where  a  broker  sells 
shares  one  week,  then  raises  the  price  next,  with- 
out mine  values  to  justify  the  rise,  simply  to  acceler- 
ate share  sales.  If  a  man  invests  in  a  mining  prop- 
osition that  is  not  yet  paying  dividends  and  is  told 
that  he  is  going  to  make  a  lot  of  money,  he  either 
realizes  that  he  is  to  make  it  through  a  speculative 
rise  in  value— irrespective  of  the  intrinsic  value  of 
the  property— or,  that  he  is  to  make  it  through  a 
material  rise  as  the  prospect  reaches,  and  finally 


268  ROCKS  IN  THE  ROAD  TO  FORTUNE 

passes,  the  dividend  period.  The  first  instance  is 
unsound,  for  the  vendor  cannot  force  nature.  He 
secures  the  money  upon  representations  he  cannot 
fulfill.  He  does  not  know  that  there  will  be  a  rise 
in  values  that  are  material.  He  can  onlv  force  a 
fictitious  rise,  which  could  not  be  sustained  in  the 
event  of  many  buyers  desiring  to  sell.  In  the  latter 
case,  he  believes  that  the  money  is  to  be  used  in 
the  improvement  of  the  property.  If  he  is  simply 
"gambling  in  stocks,"  that  is  another  phase  of  the 
matter,  and  this  chapter  will  be  of  no  interest  to 
him.  I  assert,  however,  that  he  is  not  in  mining, 
and  that  gambling  in  prospect  stocks  is  not  a  sound 
business  and  alw^ays  results  detrimental  to  the  in- 
dustry. It  comes  down  to  the  point  that  has  been 
discussed  all  through  this  book:  Shall  the  Mining 
industry  be  the  avenue  through  which  a  few  will 
profit  at  the  expense  of  the  many? 

If  a  man  has  nothing  to  do  but  watch  the  stock 
ticker,  or  stand  in  the  "curb"  crowd,  who  knows 
that  there  is  a  possibility  of  a  stock  rising  and  fall- 
ing a  point  or  so  a  day,  such  as  did  the  room  traders 
in  the  writer's  office,  and  who  knows  that  it  is  not 
mining  for  ore,  but  "speculation,"  and  that  his  only 
opportunity  of  profit  lies  in  buying  at  a  low  figure 
and  selling  at  an  advance,  thus  taking  from  some 
man  the  profit  he  may  make  by  the  transaction, 
instead  of  taking  it  from  the  earth,  then  he  is  specu- 
lating in  fictitious  quotations,  but  he  should  not  at- 
tribute his  losses  to  the  industry;  he  should  not  say, 
"I  have  been  speculating  in  mines."     A  trader  in 


ROCKS  IN  THE  ROAD  TO  FORTUNE       269 

stocks  can  follow  the  advice  given  him  by  embryonic 
brokers,  for  perhaps  their  advice  in  these  instances 
is  just  as  good  as  any  other  man's  advice;  it  be- 
comes merely  a  question  of  gambling. 

If  the  brokers  who  write  the  alluring  circulars 
were  to  confine  their  efforts  to  the  obtaining  of 
customers  from  the  class  that  are  known  as  "stock 
gamblers,"  the  loss  or  gain  would  be  kept  among 
those  who  know,  and  the  winnings  one  day  would, 
perhaps,  be  lost  to  some  other  man  the  next.  These, 
however,  are  not  the  facts.  The  circulars  sent  out 
by  those  pseudo  mining  operators  find  their  way 
to  almost  every  interior  fireside  of  the  people  resid- 
ing far  away,  who  buy  mining  stocks  as  an  invest- 
ment, who  spend  their  time  in  manly  pursuits,  the 
felling  of  trees,  the  tilling  of  the  ground,  the  haul- 
ing of  products  to  market,  or  the  wage-earner  kept 
at  his  bench.  These  people  are  not  in  touch  with 
the  speculative  pulse  of  the  stock  market;  they  are 
not  in  po.sition  to  buy  at  ten  cents  and  sell  at 
eleven  cents.  To  them  mining  investments  are 
something  to  be  held  on  to,  an  opportunity  to  grow 
rich  from  a  wealth  honestly  won  from  nature;  this 
is  what  the  literature  tells  them.  Very  few  know, 
or  are  informed,  that  the  money  they  invest  in  pros- 
pect stocks  quoted  upon  exchanges  seldom  goes  in 
the  ground.  They  feel, — when  shown  the  increase 
to  encourage  them  to  buy  more — that  the  rise  in 
quotations  comes  from  betterments  at  the  mines.  To 
them,  mining  is  the  extraction  of  a  precious  metal 
from  the  earth,  sold  or  milled,  and  the  residue  net 


270  ROCKS  IN  THE  ROAD  TO  FORTUNE 

results  declared  as  profits,  just  as  it  is  to  the  com- 
mercial operator.  The  other  side  is  raw  speculation, 
where  you  have  to  watch  the  board  every  hour,  and 
you  cannot  often  follow  that  end  and  at  the  same 
time  attend  to  your  ordinary  business. 

If  a  gentleman  residing  in  the  northern  part  of 
the  State  of  New  York  is  visited  by  a  travelling 
stock  salesman,  or  receives  market  letters  wherein 
the  usual  "Buy,  Buy,  Buy"  is  made  a  prominent 
feature,  or  is  given  a  "hurry-up"  call  by  telephone, 
showing  a  desire  to  put  him  "on  to  a  sure  thing," 
and  he  is  told  that  a  certain  stock  is  selling  low 
and  is  bound  to  go  up,  and  he  buys  a  thousand 
shares  at  ten  dollars  a  share,  thus  paying  |10,000 — 
say,  in  February,  1906 — he  is  not  watching  the 
ticker;  he  is  far  away  attending  to  his  business.  He 
has  believed  that  he  is  in  mining.  He  puts  that 
stock  away  among  other  securities,  which  he  hopes 
will  bring  him  a  competency  in  his  old  age.  Finally, 
he  needs  some  money  badly,  and  he  turns  to  his 
reserves;  he  sends  the  one  thousand  shares  to  a 
broker,  and  he  is  unable  to  get  a  sound  bid.  The 
best  he  can  do  is — say  a  dollar  a  share.  The  reply 
comes  back,  that  "it  is  a  bad  time  to  sell  stocks," 
"the  people  are  frightene^^  "  "there  is  a  depression," 
"money  stringency,"  and  a  lot  of  other  excuses — not 
one  of  which  should  follow  legitimate  mining,  for, 
if  a  man  is  profitably  extracting  ore,  his  product  is 
the  medicine  that  cures  all  these  ills.  If  this  man 
is  faced  with  a  |9,000  loss,  is  it  reasonable  to  expect 
that  man  to  be  friendly  to  the  mining  industry? 


ROCKS  IN  THE  ROAD  TO  FORTUNE       271 

If  the  reader  thinks  that  this  is  an  overdrawn 
example,  let  him  take  a  pencil  and  figure  out 
the  declines  in  some  of  the  stocks  that  were  sensa- 
tionally promoted  and  boomed  on  some  exchange  or 
curb.  The  cold,  calm  way  to  look  at  these  matters 
is  by  pencil  and  paper,  figure  the  price  paid  and 
the  price  obtainable  when  you  want  to  sell. 

The  writer  has,  for  many  years,  been  a  member 
of  stock  exchanges,  and  he  can  conscientiously  say 
that  there  is  legitimate  share  speculation.  But  he 
means  in  the  mines  of  proven  merit;  not  when  the 
company  is  needing  money  for  development  pur- 
poses, but  where  the  mine  is  paying  its  own  way, 
even  though  it  is  not  upon  dividend  basis,  at  least 
doing  something  to  justify  a  value,  but  not  where 
quotations  are  manipulated  simply  for  the  purpose 
of  exciting  the  cupidity  of  those  not  well  versed  in 
the  ethics  of  speculation.  When  a  mine  has  passed 
to  the  dividend  period,  the  speculative  value  at- 
tached to  the  stock  is  that  which  follows  the  pos- 
sibility, of  the  striking  of  greater  ore  bodies  of  a 
higher  grade  that  may  increase  its  earnings.  In 
such  cases,  of  established  values,  there  should  be  a 
mart  in  which  to  buy  or  sell  such  shares.  But  the 
quotation  of  prospect  mining  shares,  as  has  been 
practised  in  the  last  three  years  upon  new  ex- 
changes and  upon  "curbs,"  or  upon  private  quota- 
tions— suppose  to  be  sound — only  brings  sorrow  to 
those  who  invest  upon  the  values,  and  causes  them, 
for  years,  to  entertain  a  feeling  of  doubt  as  to  the 
stability  of  mining  generally. 


272  ROCKS  IN  THE  ROAD  TO  FORTUNE 

A  review  of  the  mining  companies  listed  and 
values  quoted  upon  the  earnings,  will  show  that 
there  is  a  striking  regularity  of  quotations  in  the 
shares  of  the  real  dividend  payers — a  stability  not 
shared  by  the  shallow  prospect — where,  if  the  de- 
mand is  good,  enormous  values  are  added  by  each 
upward  rise  of  a  few  points,  which,  however,  are 
not  sustained  when  a  number  of  sellers  appear  in 
the  market.  Fully  500,000  of  our  American  people 
are  now  sadly  aware  of  this  fact,  but  they  should 
not  even  intimate  that  the  legitimate  avenue  of 
mining  is  responsible  for  their  misfortunes,  or  that 
commercial  miners  assumed  any  part  in  the  trading. 
There  is  another  form  of  listed  stocks  known  as 
"semi-dividend"  payers;  that  is  to  say,  mines  that 
pay  a  long  time  and  then  cease  paying.  These  can 
only  be  classed  as  speculative  prospects;  because,  if 
the  dividends  stop,  the  property  falls  back  into  the 
prospect  class.  The  value  of  such  is  only  gauged 
by  the  actual  net  value  of  the  ore  left  in  sight,  or 
salvage.  But  speculation  in  this  class  of  shares  is 
justified  upon  the  assumption  that  the  property  will 
soon  resume  dividends.  But  a  prospect  that  has 
never  paid  a  net  dollar,  not  even  with  a  fair  volume 
of  good  ore  in  sight — with  the  chances  that  follow 
prospects — that  they  may  never  pay,  and  the  pros- 
pect itself  in  sore  need  of  capital  to  demonstrate  its 
worth,  that  prospect  has  no  place  on  a  stock  ex- 
change, where  the  quotations  indicate  a  healthy  con- 
dition at  the  property,  and  when  put  there  during 
its  incipient  period,  it  is  that  some  man  may  obtain 


ROCKS  IN  THE  ROAD  TO  FORTUNE       273 

another  man's  money,  and  should  be  plainly  marked 
speculation  only,  for  the  reason  that  the  money  in- 
vested by  the  public  in  the  stock  so  quoted  does  not 
help  the  prospect.  It  is  not  treasury  stock  they  are 
buying,  it  is  simply  a  lot  of  certificates  of  doubtful 
value  changing  hands.  If  a  man  puts  fifty  thou- 
sand dollars  into  fifty  different  stocks  known  as 
"stock  promotions,"  though  quoted  on  an  exchange, 
not  a  dollar  of  that  money  goes  into  the  prospect — 
the  money  simply  passes  along.  If  a  prospect  needs 
capital  for  its  development,  the  funds,  or  even  a 
reasonable  part  of  it,  cannot  be  kept  on  hand  to 
sustain  a  market  quotation.  Consequently,  why  is 
a  prospect  listed  until  the  funds  needed  to  prove 
its  worth  has  been  secured? 

Where  a  number  of  bare  prospects  are  listed,  most 
of  them  without  a  ton  of  commercial  ore  in  sight, 
and  practically  no  development,  and  a  value  all  the 
way  from  |100,000  to  |600,000  placed  upon  them, 
simply  because  they  are  in  the  same  district  or 
county  wherein  a  good  mine  is  located,  the  man- 
ipulations of  the  quotations  covering  the  same  has 
no  bearing  upon  the  intrinsic  value,  such  as  the 
actual  striking  of  a  body  of  high  grade  ore  would 
have.  It  is  simply  gambling  in  the  highest  form 
of  risk — for  not  one  In  a  hundred  ever  pass  upon  a 
dividend  paying  basis.  The  striking  of  a  little  sliver 
of  high  grade  ore,  or  the  shipping  of  a  few  tons  does 
not  stamp  the  prospect  commercial.  Considering 
the  general  high  capitalization  placed  upon  these 
holes  in  the  ground,  which  it  is  fashionable  to  fig- 


274  ROCKS  IN  THE  ROAD  TO  FORTUNE 

ure  at  |1,000,000,  each  point  rise  means  an  added 
110,000  to  the  value,  provided  all  the  capital  stock 
has  been  issued,  yet  often  without  any  work  being 
in  process  at  the  mines,  these  values  are  often 
marked  up  from  |5,000  to  |50,000  in  a  day,  and  some 
man  suffers.  It  savors  of  the  man  who  told  his  wife 
at  supper:  ''Sue,  I  made  |1,000  to-day."  "How  did 
you  do  it,  Phillip?"  "I  marked  up  all  the  goods  in 
the  store  twenty-five  per  cent."  "But  suppose  you 
can't  sell  them?"  "Then  I  will  mark  them  down 
again  and  take  my  loss."  The  writer  may  be  radical 
as  "my  friends"  say,  but  from  the  standpoint  of  a 
commercial  valuation  eliminating  speculative  pos- 
commercial  valuation,  eliminating  speculative  pos- 
sibilities, there  never  was  a  hole  in  the  ground 
without  ore  exposed  worth  |200,000.  Yet  there  has 
been  many  thousand  sold  at  much  higher  ratios.  It 
is  a  system  that  is  deplored  for  it  is,  indeed,  rare 
w^here  ever  they  earn  a  legitimate  dollar  from  actual 
ore  extraction. 

The  writer  appreciates  that  speculators  make  pro- 
fits buying  and  selling  mining  tetocks  upon  the 
rise  and  fall;  but  the  trader  must  be  closely  identi- 
fied with  the  stock  exchange  or  the  "curb"  on  which 
the  stocks  are  quoted.  He  cannot  be  a  merchant  or 
a  farmer  far  away  from  stock  tickers.  He  must 
have  a  knowledge  of  mining — or  his  broker  must 
have  a  practical  knowledge — that  he  may  be  able 
to  draw  distinctions  between  the  good  and  bad 
news  that  generally  finds  its  way  to  the  East  for 
the  purpose  of  influencing  quotations.     If  a  broker 


ROCKS  IN  THE  ROAD  TO  FORTUNE        275 

is  a  miner  and  lie  hears  of  a  strike  and  can  find 
out — as  he  generally  can — the  nature  of  the  strike, 
He  can  form  a  good  opinion  as  to  whether  the  stock 
will  hold  its  high  values  or  not.  But  ninety-nine 
people  out  of  a  hundred  cannot  follow  quotations  or 
take  advantage  of  news. 

The  writer  was  on  the  floor  of  his  New  York  ex- 
change when  a  big  strike  of  copper  ore  w^as  made 
in  the  Anaconda  mine,  at  the  depth  of  2,200  feet — 
it  flashed  over  the  wire  about  two  years  ago — East- 
ern speculators  and  share  buyers  alike  went  fairly 
crazy,  and  the  quotations  almost  pushed  the  board 
marker  off  his  platform.  It  was  reported  that  they 
had  struck  into  fifteen  feet  of  the  richest  copper 
glance  ore  ever  found,  and  they  predicted  immense 
figures  for  the  mine.  The  writer  did  not  question 
the  existence  of  that  body  of  ore.  He  had  examined 
the  camp  and  had  friends  in  the  district  at  the  time. 
He  knew  that  it  was  usual  to  strike  those  lenses  of 
ore  in  Butte  mines;  it  was  simply  a  question  as  to 
the  volume  of  the  lense;  but  none  of  them  had  in 
the  past  ever  extended  to  any  great  length  and, 
when  they  were  found,  were  generally  kept  to 
sweeten  up  the  lower  gTade  ores,  as  some  of  the 
Butte  ores  ran  less  than  3  per  cent  and,  to  maintain 
a  higher  average,  these  bodies  of  high  grade  ore 
were  mixed  with  the  lower  and  sent  to  the  smelter; 
then,  again,  the  higher  grade  ores  were  shipped 
alone,  and  considerable  comment  made  on  the  rich- 
ness of  the  shipment.  But,  to  the  writer,  it  was  like 
taking  candy  from  a  child  to  make  money  out  of 


276   ROCKS  IN  THE  ROAD  TO  FORTUNE 

that  report.  It  was  only  a  question  of  how  much, 
money  a  man  could  put  up  as  marg:ins  on  the  short 
side  of  the  Anaconda  stock.  I  knew  that  they  could 
hold  those  figures  for  a  while,  but  the  decline  was 
inevitable. 

The  opportunities  for  a  speculator  to  make  money 
in  any  class  of  stocks,  provided  he  has  good  advice, 
are  recognized.  But,  when  he  is  speculating  in  min- 
ing stocks,  the  advice  of  the  broker,  if  not  good, 
may  cause  him  loss  as  often  as  gain,  and  the  advice 
cannot  be  sound  unless  there  is  sufficient  experience 
to  appreciate  the  meaning  of  strikes  and  to  draw 
deductions  as  to  the  value  and  continuity  of  the  ore 
said  to  have  been  discovered. 

Where  the  prospect  is  listed  upon  some  exchange, 
the  question  of  how  the  operating  expense  is  ob- 
tained is  unexplained  in  the  literature;  there  is  gen- 
erally nothing  but  the  advice  to  buy.  In  general 
mining,  the  development  fund  must  first  be  in  hand. 
Without  improvement  the  prospect  is  worthless. 
If  the  manipulator  succeeds  in  raising  the  price 
from  ten  cents  to  a  dollar  a  share  and  the  opera- 
tions at  the  mine  show  no  material  increase,  the 
quotation  is  based  simply  upon  venture  without  any 
substantial  merit. 

If  William  Johnson,  of  Akron,  Ohio,  buys  a  thou- 
sand shares  of  stock  in  the  King  Bee  prospect, 
quoted  at  ten  cents  a  share,  receiving  it  from  Clark, 
who  paid  eight  cents  per  share,  who  in  turn  received 
it  from  Jackson  who  paid  six  cents  per  share,  who 
in  turn  received  it  from  the  promoter  at  four  cents 


ROCKS  IN  THE  ROAD  TO  FORTUNE       217 

per  share — all  of  these  men  make  what  is  known 
as  speculative  money.  Each  takes  from  some  one 
else.  The  mine,  or  prospect,  has  given  them  noth- 
ing. Finally,  the  stock  goes  to  twelve  cents  per 
share,  and  Charles  Peterson,  of  Madison,  Wisconsin, 
buys  in  the  open  market  and  receives  Johnson's 
stock.  Anyone  can  understand  where  Johnson  made 
|200  dollars.  But  what  did  the  prospect  receive, 
that  it  might  push  development  work  and  thus 
demonstrate  its  value?  Perhaps  Peterson  may  sell 
to  some  other  person.  But  there  is  always  a  limit 
of  rise  and  demand;  perhaps  he  cannot  sell — and  he 
has  to  rest  upon  the  intrinsic  value  of  the  prospect. 
Then  it  is  found  out  that  the  prospect  has  no 
material  value;  it  is  worthless  from  a  commercial 
standpoint;  there  is  no  money  in  the  treasury  to 
even  make  an  effort  to  determine  if  it  is  valuable  or 
not.  Consequently,  Peterson  is  the  loser.  The  man 
who  originally  put  out  the  stock  and  all  of  the 
others  down  to  Peterson  have  made  money.  But 
Peterson,  having  read  the  flaring  headlines:  "Buy 
listed  stocks;  you  can  always  sell  as  well  as  buy," 
now  knows  that  there  is  nothing  in  that  slogan. 
And  there  never  was  anything  in  it  unless  there 
were  more  people  wanting  to  buy  than  there  were 
men  who  desired  to  sell. 

Now,  for  an  illustration,  the  writer  will  explain 
how  these  prospects  are  listed.  A  camp  is  dis- 
covered. Some  very  rich  ore  is  found  at  the  surface. 
Perhaps  lessees — who  are  the  makers  of  commer- 
cial mines,  or  rather  the  extractors  of  what  com- 


278  ROCKS  IN  THE  ROAD  TO  FORTUNE 

mercial  ore  exists — commence  to  ship.  And  the 
excitement  is  on — such  as  has  followed  frequently 
in  the  last  twelve  years.  The  prospect  that  shows 
the  ore  is  the  bell-wether  of  the  district.  Promoters 
flock  in  there,  and,  linally,  the  citizens  organize  an 
exchange.  Prospectors  will  take  ground  in  the  im- 
mediate vicinity,  that  perhaps  may  show  an  assay 
value,  and  perhaps  not.  They  do  about  ten  or  fifteen 
feet  of  work,  perhaps  a  little  more,  then  they  take 
advantage  of  the  fever  tliat  has  clouded  reason,  and 
commence  to  sell  stock.  This  prospect  may  not 
have  cost  them  |500  dollars.  They  form  a  corpo- 
ration with  a  million  shares  capital,  of  one  dollar 
each  par  value.  Then,  by  influence — or  some  other 
system  known  to  themselves — they  list  this  pros- 
pect upon  the  exchange,  putting  400,000  shares  in 
what  is  called  a  "treasury"  for  development  pur- 
poses, and  000,000  shares  is  paid  for  the  property — 
for  which  they  expended,  perhaps,  |500  and,  per- 
haps, afterwards  did  |300  in  work. 

They  begin  to  circularize,  using  the  stereotyped 
remark  about  "buy  listed  stocks,  you  can  always 
sell."  Now,  these  men  are  anxious  to  sell  that  stock. 
So  they  meet,  and  say:  Well,  what  will  we  start  it 
at?  One  will  say:  Well,  say  ten  cents  a  share.  So 
they  start  it  at  ten  cents,  this  being  the  popular 
figure,  which  is  upon  a  valuation  of  |100,000  on 
all  the  stock,  though  intrinsically  there  is  no  value. 
They  hold  all  of  the  stock.  They  could  have  started 
it  at  fifteen  cents  just  as  well.  They  know  no  stock 
is    out.       Consequently,    the    stock    in    cases    is 


ROCKS  IN  THE  ROAD  TO  FORTUNE       279 

"washed."  Circulars  go  out  through  the  country 
showing  rises  in  value  of  this  stock.  The  promoters 
say  that  it  is  going  very  high;  it's  right  in  line  with 
the  big  strike;  assays  show  high  values,  etc.  Yet, 
during  all  the  time,  there  has  not  been  one  ton  of 
commercial  ore  shipped — perhaps,  even  work  at  the 
mine  is  not  under  progress.  They  have  the  location. 
It  may  never  be  worth  a  dollar,  and  it  surely  will 
never  be  worth  a  dollar  until  it  is  developed. 

The  writer  has  received  telegrams  from  Western 
promoters,  new  in  the  business — and  perhaps  think- 
ing that  he  did  not  know — wherein  it  was  claimed 
that  they  were  going  to  put  a  certain  stock  on  the 
market  one  day  at  twenty  cents  a  share,  and  to  "buy 
in,"  as  it  was  going  to  go  up.  I  have  had  many  of 
those  telegrams  sent  to  my  Wall  Street  Office,  and 
to-day  every  stock  tipped  shows  a  loss  of  from  sixty 
to  eighty  per  cent  of  the  original  price  at  which 
they  were  put  out.  It  is  to  the  interest  of  "mush- 
room." operators  to  convey  the  impression  that  you 
can  sell  as  well  as  buy.  But  it  is  a  foolish  man, 
indeed,  who  does  not  understand  that  the  only  way 
he  can  sell  is,  that  some  other  man  may  want  to 
buy;  if  he  is  not  there,  then  he  must  be  searched 
out,  a  costly  undertaking.  He  must  understand 
that  the  promoter  that  held  the  stock  in  the  begin- 
ing,  for  which  he  paid  practically  nothing,  and  who 
sold  it  for  ten  cents  a  share,  is  not  inclined  to  give 
the  public  his  money,  he  is  not  buying  at  an  ad- 
vance, he  is  selling;  consequently,  if  there  are  any 
bidders,  they  must  come  from  the  outside  public. 


280       ROCKS  IN   THE  ROAD   TO  FORTUNE 

Otherwise  the  man  that  holds  the  stock  is  com- 
pelled to  hold  and  take  his  loss. 

This  class  of  promotion  is  unsound,  and  in  the 
last  two  years  it  has  been  carried  on  to  such  an  ex- 
tent that  its  influence  has  been  felt  in  every  hamlet 
of  the  United  States.  In  one  district  of  the  West — 
where  it  is  earnestly  hoped  there  may  be  three  or 
four  commercial  mines — properties  that  give  no  in- 
dication of  ever  being  commercially  valuable  were 
quoted  around  a  value  of  from  |300,000  to  |500,000 
for  the  man  that  bought,  paid  that  rate.  Every 
conceivable  system  of  promotion  was  worked,  it  is 
said  that  the  telegraph  bills  of  some  firms  in  a 
month  were  suificient  to  do  ample  development  work 
on  many  prospects  to  demonstrate  their  value. 
Some  of  those  interested  in  these  "mushroom"  quo- 
tations built  up  a  business  of  such  proportions  as  to 
be  almost  incredible.  I  read  in  one  of  the  reliable 
publications  in  the  United  States,  "The  Mineral  In- 
dustry," that  the  receipts  of  one  firm  of  brokers 
reached  |14T,000  in  one  day.  Yet,  every  one  of  the 
promotions  of  that  firm  is  to-day  dragging  along  in 
the  mud  of  inattention  and  inactivity  at  a  few  cents 
above  nothing,  and,  perhaps,  if  there  were  a  heavy 
offering  of  shares,  there  would  be  no  bids  at  all. 
Here  is  illustrated  the  evil  of  speculation  without 
ample  development. 

Men  say  that  my  statements  relative  to  the  de- 
cline in  values  need  not  be  confined  to  mining,  but 
is  also  shown  in  railroad  shares  and  bonds  that  fol- 
lowed recent  depressions.     It  is  admitted  that  cer- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       281 

tain  railroad  shares  and  bonds  have  eased  off  ma- 
terially. But  where  a  railroad  bond  is  concerned, 
its  decline  has  not  affected  the  material  value. 
There  is  something  of  intrinsic  merit  behind  the 
stock  or  bond — some  actual  physical  evidence  of 
value;  the  bond  covers  something  that  is  earning, 
consequently,  a  five  per  cent,  bond  may  be  selling 
at  ninety  per  cent  of  its  face  value,  but  there  is 
something  behind  the  bond  to  earn  the  five  per  cent 
and  the  holder  knows  that  he  will  receive  his  in- 
terest, even  if  the  bond  sold  as  low  as  seventy  per 
cent  of  its  par  value.  But  there  is  absolutely  noth- 
ing behind  the  undeveloped  non-commercial  pros- 
pect— nothing  but  hope.  The  only  value  it  ever  had 
was  through  the  creating  of  confidence.  And,  as 
long  as  that  confidence  existed,  the  value  was  sus- 
tained; but,  when  destroyed,  and  no  money  on  hand 
to  try  to  make  the  prospect  demonstrate  its  value, 
then  there  was  absolutely  nothing  substantial  to 
justify  the  catch-penny  line  of  "Buy  listed  stocks, 
you  can  sell  them  when  you  wish;"  it  is  simply  an- 
other form  of  unsound  promotion.  The  man  who 
sells  the  stock  direct,  without  a  quotation,  reaps  a 
heavy  commission;  the  man  who  sells  the  same 
class  of  stock  by  listing  upon  quotations  that  can- 
not be  sustained  by  intrinsic  merit,  endeavors  to 
save  the  commission  he  would  be  forced  to  pay  to 
the  itinerant  vendor  of  mining  shares  in  eastern 
cities;  in  both  cases  the  public  pays  the  commission. 
How  can  we  prove  that  a  system  is  unsound? 
Simple  argument  will  be  controverted  by  those  in- 


282  ROCKS  IX  THE  ROAD  TO  FORTUNE 

terested  in  keeping  the  system  alive.  There  is  only 
one  tangible  way:  by  an  unbiased  study  of  past 
facts.  So,  we  will  study  the  results  of  mining  share 
speculation  upon  exchanges;  see  the  results  in  the 
beginning,  follow  them  down,  and  see  the  results 
to-day;  weigh  the  same  from  the  crucial  side  of 
actual  net  profits — not  ''theory,"  "hope  in  the 
future" — but  the  actual  results,  past  and  present. 

A  man  who  invests  |100  and  loses  the  money, 
finds  poor  consolation  in  the  argument  that  he  "sold 
out  too  soon,"  or  "gave  up  too  soon,"  or  that  "some 
day  some  other  man  will  reap  the  fortune  that  he 
missed."  The  investor  is  interested  in  what  he  is 
going  to  make,  and  that,  through  the  sound  basis  of 
the  enterprise  in  which  he  has  invested.  The  spec- 
ulator does  not  look  back.  He  knows  there  is  noth- 
ing to  see. 

If  there  is  no  intrinsic  value  to  the  prospect,  the 
holder  of  its  shares  can  only  make  money  by  watch- 
ing for  an  opportunity  to  sell  at  an  advance  to  some 
other  man.  Does  it  look  reasonable  that  the  pro- 
moter, who  originally  put  out  the  stock  at  a  few 
cents  a  share,  is  going  to  allow  some  farmer,  mer- 
chant, school-teacher  or  preacher  to  make  a  profit 
should  any  man  want  to  buy  stock  at  an  advanced 
figure?  Does  it  not  look  reasonable  that  the  pro- 
moter himself  will  reap  those  benefits,  being  on 
the  ground,  sell  his  own  shares?  Is  it  not  like  the 
story  of  a  city  waiter  who  had  drifted  into  a  country 
town?  A  gentleman  came  in,  and  ordered  dinner, 
savins:: 


ROCKS  IN  THE  ROAD  TO  FORTUNE       283 

"Waiter,  bring  me  a  sirloin  steak,  cut  an  inch  and 
a  half  thick,  smothered  with  mushrooms — with  a 
Martini  cocktail  and  a  'washer'  of  Yellow  Label." 

The  waiter  looked  at  him  in  amazement. 

"Go  on.  Don't  you  know  if  there  was  anything 
in  the  house  like  that  the  boss  would  eat  it  him- 
self?" 

We  will  look  at  the  results  of  these  so-called 
listed  prospects,  for  it  is  upon  net  results  that  the 
man  who  is  not  a  stock  gambler  must  depend  for 
his  profit.  So,  we  will  take  the  cold  hard  facts,  and 
study  them  out  and  see  wherein  there  has  been  any- 
thing susbstantial  gained  through  the  listing  of 
certain  prospects.  In  drawing  a  comparison  be- 
tween past  and  present  values  of  stocks  ;-iat  have 
been  listed  or  placed  upon  the  "curb,"  as  I  claim, 
for  the  sole  purpose  of  influencing  speculation,  will 
say:  A  few  stocks  on  each  exchange  or  "  curb"  have 
not  been  singled  out  as  examples;  and  while  the 
list  is  too  long  to  reproduce,  a  fair  average  of  the 
declines  of  all  the  principal  stocks  is  here  reflected 
— not  from  one  "curb"  or  one  exchange — but  the 
East  and  the  extreme  West  is  taken — that  is,  the 
quotations  in  New  York  and  also  the  quotations  in 
San  Francisco.  Thus  the  comparison  will  not  be 
charged  as  too  local. 

In  studying  the  differences  in  prices,  the  reader 
should  consider  the  matter  seriously.  The  author 
has  never  been  much  of  a  hand  at  reproducing  sta- 
tistics. They  are  generally  dry  reading,  and,  in  this 
case,  they  are  only  made  a  part  of  this  work  as  one 


284  ROCKS  IN  THE  ROAD  TO  FORTUNE 

of  the  links  in  the  chain  of  evidence  that  he  is  en- 
deavoring to  weld  together  in  the  hopes  that  the 
American  people  will  insist  that  their  money  is 
placed  underground,  and  not  in  share  speculations. 
The  final  results  of  these  ventures  is  depressions 
in  the  general  mining  market.  The  good  suffer  with 
the  bad;  and  many  sound  development  propositions 
suspend  operations  for  lack  of  support.  But  it  is 
hoped  that  those  who  speculate  will  be  fair  enough 
to  admit  that  they  are  not  mining. 

The  first  list  will  be  that  of  the  New  York  curb. 
With  it  are  three  of  the  more  speculative  issues  of 
the  large  exchange  itself, — using  the  quotations  of 
1906  and  February,  1908. 

Prices  Prices 

in  in 

Name  of  Stock  1906  1908 

Amalgamated  Copper |105.00  |46.00 

Amrican  Smelter 150.00  62.00 

Anaconda 62.00  32.00 

Guanajuato  Con 7.00  2.50 

British  Columbia 12.50  4.50 

Cumberland    Ely 12.75  7.87 

Davis,  Daly 13.00  4.50 

Ely  Con 4.87  .62 

Boston  Copper 31.00  14.50 

Furnace  Creek 3.63  .29 

Geroux  Con 10.27  4.00 

Greene  Con* 14.00  8.75 

Kinir  Edward 3.50  .56 


ROCKS  IN  THE  ROAD  TO  FORTUNE       285 

Mitchell    14.00  .75 

McKinley   Dar 3.60  .87 

Micmac 6.37  3.62 

Nipissing*    34.00  6.75 

Tenn.   Copper 48.75  28.50 

Tonopah,  Nev* 19.00  5.00 

Tonopah   Ex 10.00  1.62 

Belmont  6.75  1.87 

Ely  Central* 5.00  1.00 

Greene  Silver* 10.00  .75 

Greene  Gold 3.75  1.00 

What  is  the  feeling  of  the  man  who  bought  in 
1906  and  held  until  1908? 

I  will  now  take  up  the  quotations  on  the  San 
Francisco  Stock  Exchange.  Most  of  these  corpora- 
tions are  what  is  knowm  as  "million-dollar  corpora- 
tions"— though  some  at  higher — that  is  to  say,  one 
million  shares  of  a  par  value  of  one  dollar  each. 
Consequently,  when  a  stock  has  sold  at  30  cents 
a  share,  it  was  at  the  rate  of  |300,000  for  the 
prospect,  provided  all  the  stock  was  issued.  When 
it  is  selling  to-day  at  5  cents  a  share,  it  is  at  the  rate 
of  150,000  for  the  prospect,  or  a  loss  on  the  quotation 
of  1250.000.  These  quotations  were  made  in  1907  and 
1908,  a  period  of  about  eighteen  months.  The  list 
has  been  considerably  reduced,  as  space  would  not 
permit  us  to  name  all  the  prospects  traded  in.  But 
the  decline  has  run  through  the  general  list  in  about 

*)     Indicates  highest  price  reached  by  the  stock. 


286       ROCKS  IN  THE  ROAD  TO  FORTUNE 

the  same  proportions  as  San  Francisco's  quotations 
in  1907,  and  February,  1908. 

Prices  Prices 

in  in 

1907  1908 

Belmont  $  4.70  $  1.75 

Golden  Crown 14  .06 

MacNamara 48  .38 

Montana 3.50  1.95 

Mont.  Pitts 22  .05 

Tonopah     16.00  5.00 

Golden  Anchor 31  .05 

Home 10  .02 

Jim   Butler 1.15  .44 

Midway   1.75  .80 

West  End 1.40  .39 

Tonopah  Ext. 4.00  1.60 

Adams 20  .07 

Blue  Bull 50  .19 

Booth 83  .25 

Com.  Frac 4.70  .81 

Daisy   2.25  1.02 

Dixie 13  .05 

Fr.  Moh'k 1.15  .30 

Grandma   25  .10 

Jumbo 4.00  1.25 

Kewana 1.62  .51 

LajTuna 1.50  .90 

Lou  Dillon 18  .05 

Mohawk   17.00  10.00 

Oro 47  .14 


ROCKS  IN  THE  ROAD  TO  FORTUNE       287 

Red  Top 3.75  2.00 

Silver  Pick 1.30  .31 

Stives 1.65  .48 

Atlanta   76  .36 

Blue  Bell 29  .09 

Colum.  Mtn 1.02  .22 

Conqueror 22  .06 

Empire   15  .05 

Great  Bend 1.00  .32 

Great  Bend  Ext 32  .06 

Jumbo  Ext 2.20  .50 

Kendall   40  .20 

Lone  Star 23  .11 

Red  Top  Ext 51  .14 

Sandstorm 55  .29 

Silver  Pick  Ex 12  .02 

Triangle 51  .08 

Goldfield  Cs 8.50  5.00 

Bullfrog  Mn 28  .10 

Nat.  Bank 46  .13 

Mont.  Sh.  Ex 15  .02 

Steinway 18  .04 

Yankee  Girl 11  .02 

Bon.   Clare 39  .11 

Gold  Bar 1.25  .36 

Mont.  Mtn 32  .15 

Tramp  Con 1.45  .32 

Dexter 27  .11 

Jump  Jack 17  .05 

Man.  Con 65  .21 

Pine  Nut .19  .04 

Stray  Dog 32  .15 


288   ROCKS  IN  THE  ROAD  TO  FORTUNE 

The  writer  has  but  little  personal  knowledge  of 
the  intrinsic  value  of  the  various  prospects  repre- 
sented bv  these  quotations — the  properties  being 
mostly  of  recent  location.  Consequently,  he  is  not 
in  a  position  to  say  that  they  are  worthless — no  man 
being  able  to  forecast  what  a  prospect  may  develop 
into.  I  have,  however,  been  informed  by  people 
that  have  seen  many  of  these  prospects  that  there  is 
scarcely  any  development  upon  them,  and  that  very 
few  really  give  any  indication  of  being,  at  the 
present  time,  commercially  valuable.  I  know  of 
men  who  have  defended  this  system  of  promotion  by 
stating,  that,  if  one  mine  has  been  found  in  the  dis- 
trict, any  person  having  a  prospect  has  the  right  to 
sell  it  at  a  value  far  in  excess  of  its  intrinsic  merit, 
on  the  ground  that  if  one  mine  is  found  there  may 
be  others  found,  as  has  been  the  case  in  other  dis- 
tricts. According  to  this  assumption,  a  man  can 
start  out  with  a  burro  and  a  few  notices  and  make 
fifty  locations  a  day  within  the  area  of  one  of  two 
miles  of  some  strike,  and  be  justified  in  asking  from 
1100,000  to  1250,000  for  the  property  upon  a  specula- 
tive basis;  it  would  seem  that  such  an  argument 
would,  in  some  manner,  be  based  upon  personal  in- 
terest. It  is  admitted  that  a  prospector  of  experi- 
ence, who  has  made  a  study  of  conditions  and  indica- 
tions, can  go  into  any  district  and  reduce  his  chances 
of  loss  by  applying  to  each  location  the  results  of 
past  experiences.  But  it  does  not  get  away  from  the 
fact,  that  men  of  limited  experience,  who  stake 
everything  for  miles  around  some  apparent  good  de- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       289 

posit,  simply  because  they  can  get  an  assay,  are  not 
justified  in  asking  these  enormous  figures;  be- 
cause, there  is  no  district,  but  in  which,  a  man  can 
get  an  assay  from  almost  every  "sliver"  that  has 
been  formed.  But  it  is  generally  recognized  by 
scientific  miners  that,  while  there  may  be  10,000 
"slivers,"  there  may  be  only  a  very  few  commercial 
mines.  And,  if  we  went  upon  this  assumption,  a 
man  would  be  justified  in  taking  ten  thousand  loca- 
tions and  selling  them  at  rates  of  from  |100,000  to 
$200,000,  making  the  loss  so  appalling  that  the  min- 
ing of  precious  metals  would  be  in  complete  dis- 
credit. 

The  only  way  to  mine,  is  to  mine;  that  is  to  say, 
open  a  prospect,  and  when  its  value  is  known,  then 
you  are  in  position  to  ask  a  figure.  But  no  man  is 
justified  in  demanding  exorbitant  advances  over  his 
expenditures  simply  upon  the  assumption  that  he  is 
in  the  same  county  with  some  lode  or  deposit  that 
has  shown  paying  ore. 

There  are,  perhaps,  many  of  the  prospects  enumer- 
ated which,  at  some  time,  with  proper  development, 
may  prove  to  be  mines;  but,  as  far  as  their  commer- 
cial aspect  at  present  is  concerned — with  the  bare 
exception  of  perhaps  six  or  eight  out  of  a  thousand — 
there  is  nothing  in  evidence  that  would  justify  their 
being  classed  as  of  any  material  value,  figuring  the 
money  invested  as  against  what  actual  profits  could 
be  made  to-day.  Yet  these  prospects  have  been 
quoted  at  prices  running  from  $100,000  to  as  high  as 
120,000,000  each ;  for  I  class  all  property  as  prospects 


290  ROCKS  IN  THE  ROAD  TO  FORTUNE 

until,  by  their  proper  opening  and  ore  showing  at 
the  bottom,  they  advance  beyond  the  prospect 
period.  And  at  this  point  the  writer  desires  to  say 
that  he  does  not  draw  a  line  of  demarcation  against 
any  formation,  be  it  deposit,  slip,  geyser,  or  blan- 
ket, provided  it  contains  ore  in  a  paying  body;  Min- 
ing precious  metals  to-day,  upon  commercial  lines, 
means  the  extraction  of  ore  wherever  it  is  found  in 
a  commercial  body.  Prospects  that  show  the  highest 
quoted  valuation,  even  though  they  show  market- 
able ores  in  large  bodies,  cannot  be  unqualifiedly 
stamped  as  commercial  until  their  earning  power, 
by  continuous  shipments  through  several  years  en- 
ables a  sound  valuation  to  be  placed  upon  the  same. 
In  a  celebrated  district  of  the  West — which  all  com- 
mercial miners  hope  will  prove  its  right  to  a  stand- 
ing as  a  permanent  commercial  camp — the  quoted 
values  were  not  borne  out  by  the  intrinsic  worth  of 
the  prospects  listed,  but  all  of  the  production  was 
practically  made  by  miners  following  a  system  of 
commercial  mining;  the  lessees,  who  have  made  a 
practice  of  entering  mines  where  ore  was  shown, 
extracting  the  same,  paying  a  royalty,  and  making 
their  profit  between  the  cost  and  the  net;  but  until 
a  mine  is  systematically  opened,  its  value  cannot  pos- 
itively be  stated,  notwithstanding  its  shipments  are 
of  the  sensational  order.  There  are  many  properties 
in  the  world  that  make  heavy  productions  for  a  few 
years  from  shallow  workings,  then  die  out.  A  mine 
that  makes  a  strong  product  one  year,  a  smaller  pro- 
duct the  second,  a  still  lighter  product  the  third  and 


ROCKS  IN  THE  ROAD  TO  FORTUNE       291 

fourth  then  eats  into  its  reserve  the  fifth  year,  should 
not  be  termed  commercially  sound.  There  are  many 
hundreds  of  mines  which  are  commercial  to  the  ex- 
tent of  their  ability  to  produce  a  mine  that  only 
makes  a  net  product  of  |100,000,  is  commercial  to 
that  extent  only.  That  is  to  say,  if  a  mine  has  an  ore 
shoot  that  shows  three  millions  of  dollars,  it  is  rea- 
sonable to  place  a  valuation  of  |1,500,000  on  that 
ore  shoot,  and  perhaps  add  |500,000  for  an  admitted 
speculative  value.  But  in  these  sensational  camps 
— where  strikes  are  made  near  the  surface  and  prod- 
ucts of  from  1500,000  to  |4,000,000  are  made  the  first 
year  or  two — the  values  that  are  placed  on  the  stock 
is  so  large,  often  reaching  ten  to  twenty  millions 
of  dollars,  that  it  causes  the  commercial  miner  to 
hesitate,  because  all  tne  product  is  not  profit.  He 
has  the  knowledge  before  him  that  these  high  quota- 
tions may  stand  for  a  year  or  two,  but  if  there 
should  be  a  fault  in  the  ore  body,  or  a  decrease  in 
value,  that  these  quotations  may  slough  off  at  the 
rate  of  a  million  dollars  a  day.  The  men  that  make 
these  quotations  are  inexperienced  in  commercial 
lines,  or  are  simply  speculators.  A  man  cannot 
place  an  intrinsic  value  on  a  mine  until  its  ore  bodies 
are  opened  and  the  amount  of  ore  known  to  be  in 
sight;  yet  in  the  last  boom  that  took  place  in  the 
United  States,  they  jumped  the  values,  through  quo- 
tations, to  a  point  that,  on  a  sound  estimating  of  val- 
ues, would  not  have  been  posible  for  five  years,  fig- 
uring needed  development  to  sustain  such  estimates. 
Two  years  ago  the  writer  addressed  letters  to 


292  ROCKS  IN  THE  ROAD  TO  FORTUNE 

leading  publications  of  the  West  on  the  question  of 
result  that  would  follow  a  certain  Western  boom. 
His  predictions  have  been  verified  to  the  letter.  It 
did  not  take  any  great  skill ;  any  miner  of  experience 
could  have  made  a  like  prediction,  simply  by  retro- 
spect of  the  past  booms,  of  which  there  has  been 
twelve,  during  the  past  twenty-five  years,  located 
in  various  parts  of  the  world,  generally  far  away 
from  the  center  of  civilization,  as  it  is  possible 
for  the  boomers  to  locate  and  make  discoveries. 
After  the  froth  is  blown  away,  and  the  district  set- 
tled down  to  a  sound  basis  of  production,  is  the  time 
to  gauge  the  value  of  the  properties;  and  the  man 
who  waits  generally  can  buy  much  lower  than  at 
the  commencement. 

Until  a  prospect  is  making  regular  shipments,  the 
right  to  sell  shares  at  exorbitant  prices  is  ques- 
tioned. It  is  needless  to  say  that  only  a  few  people 
are  hurt;  because,  if  only  one  man,  or  one  woman, 
buys  shares  at  a  high  figure,  they  are  hurt.  Then 
again,  it  is  not  possible  to  make  a  mine  by  simply 
"washing"  stock  sales  up  and  down  to  create  favor- 
able impression  as  to  the  value  of  a  prospect  through 
the  constant  rise  of  its  share  values.  Neither  is  it 
substantial  evidence  that  a  prospect  is  valuable  be- 
cause it  may  be  located  in  the  immediate  vicinity,  or 
perhaps  the  same  county,  with  some  sensational 
"find."  It  is  in  the  same  position  relative  to  their 
value  as  was  the  learning  of  a  gentleman,  who,  giv- 
ing a  dinner  to  a  celebrated  linguist,  arose  and  said 
to  his  guests: 


ROCKS  IX  THE  ROAD  TO  FORTUNE       293 

''I  will  bet  a  thousand  dollars  that  the  Professor 
and  mvself  know  more  about  the  Chinese  language 
than  any  two  men  in  the  house;  he  knows  it  all,  and 
I  know  nothing." 

It  is  possible  that  one  mine  may  have  it  all;  thus, 
the  productions  that  are  so  loudly  heralded  from 
new  camps  may  be  made  from  a  centralized  point, 
and  all  outside  of  that  central  zone  may  not  be 
worth  a  dollar — all  living  upon  the  reputation 
of  the  few,  and  talking  about  what  the  few  have 
done.  The  right  to  sell  prospects  is  not  combated; 
it  is  the  failure  to  work  them  that  creates  a  feeling 
against  unsound  promotions.  There  is  no  man  liv- 
ing that  can  ''wish''  ore  in  the  ground,  or  know  that 
it  exists  without  the  work  necessary  to  prove  it;  and 
where  men  intend  to  invest  in  prospects,  the  money 
should  actually  go  undergTound,  and  not  simply  be 
changing  hands,  as  is  done  when  prospects  are 
quoted  and  speculated  in  upon  exchanges  and 
"curbs." 

I  reiterate  that  the  best  system  for  a  man  to 
follow  in  mining  is  through  developing  good  pros- 
pects that  show  ore,  and  give  evidence  of  com- 
mercial value — but  only  upon  moderate  valuations. 

It  has  been  asserted  that  this  volume  is  too  large, 
that  nobody  will  read  it,  and,  consequently,  it  will 
have  no  influence.  I  could  have  written  in  ten  pages 
all  that  a  commercial  miner  would  have  required  to 
understand  the  writer's  intention.  He  would  have 
known  the  basic  principles  upon  which  I  am  acting; 
but  the  man  that  does  not  know  is  the  one  I  seek  to 


294  ROCKS  IN  THE  ROAD  TO  FORTUNE 

assist.  I  want  him  to  invest  in  mines  and  prospects, 
and  join  in  reaping  the  enormous  profit  that  comes 
through  the  same.  But  I  have  made  all  these  deduc- 
tions and  illustrations  to  irrevocably  impress  upon 
him  that  his  money  should  go  underground,  and  that 
speculation  is  NOT  MINING.  Perhaps  a  few  may 
read:  I  hope  a  few  will  consider  me  sincere. 

I  would  suggest  that  the  occasional  investor  ask 
the  following  questions  before  he  sends  his  order  to 
buy  a  listed  prospect  stock: 

How  much  of  this  capitalization  was  given  to  the 
original  promoters  for  the  location? 

How  much  actual  capital  did  the  promoters 
invest? 

How  much  money  is  there  in  the  treasury  of  this 
company  to  prosecute  developments? 

Is  there  any  commercial  ore  in  sight? 

How  much  of  the  money  that  I  pay  for  this  stock 
goes  into  actual  underground  development? 

Is  my  money  simply  passing  to  some  other  person, 
and  the  mine  itself  not  benefited  by  my  purchase? 

Some  periodicals  make  much  ado  over  the  advice, 
"investigate  before  you  buy,"  but  there  are  few  who 
teach  the  investor  a  proper  way  to  investigate.  The 
mere  warning  does  not  carry  to  the  inexperienced  a 
knowledge  of  how  to  ask  the  vital  questions  that 
may  lead  him  to  a  proper  investigation;  that  is  one 
excuse  for  the  length  of  this  chapter.  The  writer 
has  always  asserted  that  where  a  paper,  if  owned  for 
private  purposes  or  a  public  medium,  accepts  the 
advertisements  that  look  unsound,  then  if  some  of 


ROCKS  IN  THE  ROAD  TO  FORTUNE       295 

the  promoters  get  into  trouble,  it  is  a  bad  form  to 
loudly  denounce  them,  boldly  stating  that  they  are 
"thieves"  and  ought  to  be  in  the  penitentiary;  Are 
they  not  simply  bolting  the  door  after  the  horse  has 
been  stolen?  Besides  it  has  another  effect.  If  a 
newspaper  is  sustaining  the  operations  of  unsound 
quotations,  at  the  same  time  condemning  some  other 
promotion,  and  yet  their  pages  in  the  same  issue 
are  filled  with  advertisements  of  mining  companies 
soliciting  subscriptions,  are  they  not  conveying,  in- 
directly, the  impression  that  the  advertisements  in 
that  issue  are  sound? 


CHAPTER  XXIV. 

COPPER  MINES  AND  THE  BARRIERS  IN 
THE  WAY  TO  SUCCESS. 

Were  it  not  that  the  inexperienced  broker  has 
made  a  specialty  of  extravagant  representations 
relative  to  copper  mines,  thus  bringing  loss  to  those 
ever  ready  to  invest  in  mining,  and  disrepute  to  the 
industry,  this  branch  would  be  let  severely  alone. 
Any  experienced  man  would  do  likewise,  for  two 
reasons:  first,  commercial  copper  mining  is  one  of 
the  most  stable  and  profitable  of  the  various  avenues 
that  constitute  mining:  second,  but  "red"  metal 
mining  is  a  rich  man's  undertaking;  the  problems 
confronting  success  are  greater  than  they  are  in 
precious  metal  extraction,  for,  until  the  copper 
properties  are  proven  "commercial,"  they  are  the 
very  personification  of  risk.  A  poor  man  has  about 
as  much  chance  of  opening  and  equipping  a  big  cop- 
per mine  as  had  the  fabled  camel  with  the  needle. 

The  profits,  however,  that  follow  legitimate  oper- 
ations in  this  field,  when  the  extraction  of  the  metal 
is  upon  commercial  lines,  are  enormous;  and  the  pro- 
duction is  steady.  But,  in  making  its  copper  mines, 
there  is  a  greater  necessity  of  experience  and  heavy 
capital  expenditure  than  follows  the  making  of  pre- 

296 


ROCKS  IN  THE  ROAD  TO  FORTUNE       297 

cious  metal  mines.  In  an  average  precious  metal 
prospect,  an  ore  shoot  can  be  figured  upon  from 
precedent,  there  is  a  reasonable  regularity  of  the 
strike  and  dip.  But  not  so  in  copper.  There  is  an 
old  expression,  that  "Gold  lies  wherever  you  find  it," 
and  we  are  fast  arriving  at  that  stage  where  we  are 
compelled  to  admit  that  copper  lies  where  you  find 
it,  though  there  are  few  great  coommercial  mines 
outside  of  certain  districts ;  but  a  little  copper,  com- 
monly called  "teasers"  can  be  found  in  almost  every 
hilly  region. 

Copper  ore  shoots  and  deposits  lay  in  all  forms; 
some  perpendicular,  others  at  forty-five  degrees; 
some  like  great  plums  in  a  pudding,  others  like  little 
raisons  that  lay  near  the  larger  plums.  In  the  Tyee 
mine  of  British  Columbia,  the  ore  starts  at  the  sur- 
face in  a  little  narrow  shoot,  lays  like  a  badger,  and 
gets  larger  as  it  goes  in.  In  1887,  the  writer  oper- 
ated a  copper  mine  in  San  Pedro  district,  New  Mexi- 
co, which  was  afterwards  leased  by  the  Hon. 
William  A.  Clark,  where  the  ore  lay  like  a  strata  of 
coal,  starting  in  on  one  side  of  the  mountain  and 
going  through  to  the  other  side. 

At  Jamez,  Mexico,  nature  placed  copper  ores  in 
bodies  over  200  feet  thick,  and  about  40  feet  long. 
In  the  same  regions,  the  same  character  of  ore  will 
be  so  small  in  volume  as  not  to  admit  of  profitable 
extraction.  At  the  Balakala  mine,  California,  the 
ore  lies  practically  on  the  surface,  but  is  cut  off  by 
slate  and  porphyry  at  a  short  depth.  In  the  famous 
United  Verde  mine,  which  nearly  all  promoters  use 


298   ROCKS  IN  THE  ROAD  TO  FORTUNE 

as  a  criterion  in  writing  their  sensational  matter, 
the  ore  lies  like  a  great  chimney,  or  pipe,just  as 
though  a  piece  of  iron  tube  was  pushed  down  into 
the  earth.  The  size  runs  from  200  feet  wide  to  1,000 
feet  wide,  and  is  of  a  known  depth  of  over  1,400  feet, 
perhaps  much  deeper.  The  writer  made  a  study  of 
the  surface  of  this  ground,  with  the  view  of  apply- 
ing the  information  to  other  sections.  But  the  simi- 
larity was  never  again  found,  though  he  has  fre- 
quently "read"  that  hundreds  of  prospects  under 
promotions  have  the  indications. 

In  1901,  I  made  an  examination  of  what  was  sup- 
posed to  be  a  copper  deposit,  lying  near  the  Grand 
Canyon  of  Colorado,  the  surface  of  which  gave  the 
appearance  of  wonderful  ore  body;  but  it  was  noth- 
ing more  than  copper-stained  limestone,  with  bodies 
of  green  carbonates,  together  with  some  very  high 
grade  ore.  But  it  did  not  extend,  in  places,  over  ten 
feet  deep,  consequently,  was  not  commercial.  A  few 
cars  of  select  ore  was  shipped  for  the  purpose  of  ex- 
citing attention. 

At  Morenci,  the  ore  lies  flat,  occurring  in  bunches 
and  large  chambers.  The  old  Dominion  mine  of 
Arizona  has  a  longitudinal  shoot,  while  in  the  Cop- 
per Queen,  one  of  the  famous  mines  of  the  world,  a 
map  of  its  stopes  looks  like  the  foundation  plans  of 
a  great  building.  In  Vermont,  the  ore  lies  flat,  like 
coal  stratas.  In  Alaska,  the  high  grade  lenses  look 
like  wedges,  are  bunchy,  and,  while  some  of  the 
bodies  are  large,  they  seldom  go  down  over  forty  or 
fifty  feet,  then  the  usual  lower  grade  ore  is  encoun- 


jtL 


ROCKS  IN  THE  ROAD  TO  FORTUNE       299 

tered.  One  ore  body,  in  a  British  Columbia  mine, 
looks  like  a  shoemaker's  plan  of  a  foot.  The  ore 
body  of  the  Kio  Tinto,  Spain,  resembles  snakes 
crawling  over  rocks.  That  is  to  say,  the  ore  bodies 
lay  between  two  stratifications.  They  start  near 
the  surface  and  lay  comparatively  flat.  In  the 
Butte  (Montana),  the  shoots  lay  almost  parallel, 
occurring  in  lenses,  and  look  like  several  companies 
of  soldiers  marching  along,  the  dividing  line 
between  the  companies  being  cross  formations, 
which  are  barren. 

There  is  only  one  great  defined  copper  lode  on  the 
American  Continent,  and  that  is  the  Lake  Superior 
lode.  This  remarkable  copper-bearing  fissure  has 
been  explored  to  the  depth  of  6,000  feet.  It  may  be 
said  that  it  is  the  first  commercial  mine  operated  in 
this  country.  But  in  this  case,  as  in  the  case  of  the 
Superior  mine,  can  be  calculated  upon,  almost  to  a 
quarter  of  a  cent  of  its  metal  contents,  and  to  within 
two  or  three  feet  of  the  dip  of  the  vein;  the  strike 
being  known  and  its  value  recognized  as  from  one 
per  cent,  to  an  average  of  three  per  cent. 

So,  there  is  no  positive  precedent  to  follow  in  the 
search  of  copper  mines.  Nature  has  followed  her 
own  ideas;  we  think  we  know,  but,  to  be  frank,  we 
do  not.  In  some  districts  the  deposits  are  spread 
over  a  vast  area,  and  the  copper  contents  so  low,  as 
to  make  the  property  non-commercial,  were  it  not 
for  the  application  of  the  most  scientific  machinery 
and  enormous  capital  expenditure.  But,  so  perfect 
have  become  the  economies,  made  possible  by  the 


300  ROCKS  IN  THE  ROAD  TO  FORTUNE 

improvement  of  modern  machinery,  that  copper 
mines,  carrying  less  than  one  per  cent,  of  copper,  are 
to-day  commercial.  But  the  writer  wishes  it  dis- 
tinctly understood  that  these  are  copper  mines,  mag- 
nificently opened,  and  well  equipped;  the  same 
properties  would  be  commercially  worthless  without 
the  expenditure  of  many  millions.  A  precious  metal 
mine  can  be  worked  with  even  a  thousand  dollars 
capital,  provided  the  ore  is  there,  but  not  so  in  a 
copper  mine  with  an  average  of  even  four  per  cent, 
ore.  It  takes  a  lot  of  money  to  open  a  "red"  metal 
property. 

Copper  promotions  have  commanded  the  attention 
of  many  of  the  inexperienced  brokers,  who  believe 
because  copper  is  shown  at  the  surface  that  success 
is  inevitable;  and  they  point  to  the  shipment  of  a 
few  hundred  tons  of  high  grade  ore  as  evidence. 
Investors  are  importuned  by  the  usual  revamping 
of  wornout  statistics  and  assertions  of  wealth  to  be 
won  by  the  investment  of  small  sums.  The  re-told 
tales  of  the  fortunes  made  from  early  investments 
in  the  Lake  Superior  mines,  and  what  can  be  accom- 
plished to-day  by  the  improvement  of  machinery  is 
all  made  a  part  of  the  argument  to  induce  the  inex- 
perienced investor  to  buy  copper  shares;  but  the 
writer  has  never  read  an  advertisement  that  plainly 
told  the  truth,  that  rich  surface  ore  does  not  extend 
deep,  and  that  it  requires  large  sums  to  make  one 
pay 

This  chapter  is  written  with  the  hope  that  the 
investor  may  understand  that  he  has  not  as  much 


ROCKS  IN  THE  ROAD  TO  FORTUNE        301 

chance  of  growing  rich  out  of  a  small  investment  in 
unequipped,  undeveloped  copper  properties  as  he 
has  in  the  general  run  of  precious  metal  prospects. 
There  is  an  old  saying,  that  "it  takes  a  gold  mine  to 
open  a  silver  mine;"  it  can  be  aptly  said  that  it  takes 
both  to  open  a  copper  mine;  but  when  they  are  open, 
and  the  ore  found  to  be  continuous  and  in  large 
commercial  bodies,  they  are  going  among  the  great- 
est of  our  profit  earners. 

To  meet  the  demand  for  copper  mines  titles  have 
ben  changed  like  the  fashions.  It  is  reasoned  by 
the  promoter  that  the  investor  follows  the  "craze" 
wave,  according  to  what  line  of  mining  is  fashion- 
able; that  he  wants  to  get  into  something  new,  one 
year  it  is  gold,  then  lead,  then  silver,  then  copper; 
and  that  to  get  money  he  has  to  follow  the  craze. 
This  explains  the  plunging  of  the  promoters  into 
the  Press  whenever  a  new  mining  district  is  discov- 
ered; and  prospects  sold  at  mine  figures  before  the 
district  proves  its  right  to  a  permanent  place  as  a 
producer. 

In  the  last  five  years  there  has  been  a  great 
demand  for  copper  mines,  and  the  people  in  the 
interior  cities  have  been  told  that  an  ownership  of  a 
few  shares  would  ameliorate  their  condition  for  life. 
The  desire  of  the  promoter  has  been  to  handle 
"copper."  Consequently,  gold  mines,  with  a  little 
copper  as  a  by-product,  have  been  re-labeled  "copper 
mines  ;"silver  and  lead  properties,  carrying  two  per 
cent,  of  the  "red"  metal,  are  also  dignified  by  the 
same   title;   poor,   sickly,    water-stained    limestone 


302  ROCKS  IN  THE  ROAD  TO  FORTUNE 

stratas  are  heralded  as  coming  Verde's,  Anaconda's, 
Copper  Queen's,  etc. ;  and  the  people  who  believe  all 
this  have  been,  in  the  end,  the  losers:  the  general 
mining  industry  has  suffered  a  loss,  not  only  of 
prestige,  but  of  friends.  A  retrospect  proves  that 
the  "commercial  miner"  was  not  a  party  to  those 
unstable  ventures;  nearly  every  one  is  traceable  to 
the  door  of  the  man  who  "calls"  himself  a  miner,  but 
who,  perhaps,  was  never  a  day  underground  in  his 
life — his  mining  is  generally  done  at  a  desk. 

The  search  for  new  copper  mines  has  commanded 
the  attention  of  the  miners  of  the  world.  The  frozen 
North,  and  the  sun-baked  South  have  been  raked 
over;  but  the  commercial  results  are  yet  to  be 
proven.  Men  who  were  in  menial  positions  around 
large  producing  mines  where  no  great  mental  capac- 
ity was  required,  have  been  seduced  from  their 
proper  employment,  in  which  they  were  useful,  and 
made  high  officials  of  some  new  copper  company, 
that  the  promoter  might  point,  in  extravagant  lan- 
guage, to  the  fact  that  at  the  head  of  their  organiza- 
tion was  a  man  who  had  been  "identified  with  one 
of  the  great  dividend  producers,"  and  make  display 
of  his  opinions  of  what  the  "new  corporation  will 
do;"  thus  spreading  broadcast  his  "ideas"  as  the 
argument  for  a  sale  of  the  shares.  In  each  case 
history  repeats  itself,  and  we  look  back  over  a  field 
littered  with  failures  and  disappointments.  Ste- 
vens, in  his  Copper  Hand-book,  has  made  no  pre- 
tense to  cover  the  facts;  he  and  others  know  the 
truth.     But  it  may  be  said  that,  in  the  interim,  large 


ROCKS  IN  THE  ROAD  TO  FORTUNE       303 

sums  of  money  have  been  legitimately  expended  in 
Utah,  Arizona,  Ely,  Nevada,  and  Mexico,  in  efforts 
to  create  commercial  coper  mines. 

In  1901,  when  this  copper  excitement  was  at  its 
height,  promoters,  with  so-called  great  copper  pros- 
pects for  sale,  were  to  be  found  in  every  large  hotel; 
and  hundreds  of  prospects  with  a  little  "green  stain" 
were  capitalized  at  millions  of  dollars,  and  the 
shares  sold  in  every  little  hamlet  and  school  district. 
Fabulous  stories  of  the  wealth  of  Clark,  Daly, 
Heinze,  Phelps,  Dodge,  and  others,  were  reproduced 
in  startling  advertisements  to  encourage  the  invest- 
ment of  a  few  dollars.  To  the  inexperienced,  it 
looked  as  though  the  only  sure  road  to  wealth  lay  in 
copper  shares.  Some  of  the  promotions  were 
quoted  upon  "curbs"  and  small  exchanges  for  the 
purpose  of  creating  the  impression  that  the  share 
values  were  firm.  The  writer  did  a  little  specu- 
lating during  those  days,  but  his  coterie  of  old 
miners  had  passed  through  the  excitement  of  the 
French  Copper  Pool  of  1887-8;  they  knew  that  there 
was  only  a  certain  number  of  producing  mines,  and 
that  somebody  was  storing  copper,  that  it  was  only 
a  question  of  time  when  the  supply  would  exceed 
the  demand,  that  prices  would  drop.  It  is  strange 
how  soon  a  speculator  will  forget.  The  crash  that 
followed  the  hoarding  of  copper  by  the  French 
Syndicate  hurt  many  a  man  that  rushed  blindly  into 
the  second  excitement,  only  with  the  usual  result 
of  being  "scorched."  For  if  there  is  any  metal  in 
the  world  that  is  subject  to  wide  fluctuations  in  mar- 
ket price,  it  is  the  "red." 


304  ROCKS  IN  THE  ROAD  TO  FORTUNE 

This  copper  craze  was,  however,  a  harvest  for  the 
unsound  promoter.  He  reaped  enormous  profits. 
But  with  the  exception  of  the  "Shannon"  and  the 
"Green  Consolidated,"  both  promoted  upon  com- 
mercial lines,  where  enormous  sums  were  actually 
expended  in  equipping  and  mining,  railroad  build- 
ing, etc.,  not  a  big  producer  w^as  made  through  the 
floatation  of  the  cheap  propositions. 

The  author  recalls  meeting  many  men,  in  moder- 
ate circumstances,  who  deplored  the  fact  that  they 
"were  too  poor  to  buy  copper  stocks."  Some  did 
mortgage  their  homes;  others  taking  money  from 
mercantile  pursuits;  these,  in  the  end,  filled  the 
suicide's  grave.  The  manipulation  of  values  of  cop- 
perper  shares  resulted  in  the  widest  suffering,  and 
it  is  hoped  that  America  may  never  again  experi- 
ence a  like  "juggling"  of  quotations.  When  the 
crash  came,  the  losses  were  appalling.  But,  for 
some  unexplained  reason,  the  rally  was  quick;  prob- 
ably caused  by  the  larger  holders  agreeing  not  to 
sell  except  by  allotment.  Again  the  metal  values 
rose;  and  in  the  year  just  passed,  copper  touched 
twenty-five  cents  per  pound.  The  writer  had  once 
before  seen  it  touch  that  figure,  twenty-seven  years 
ago,  only  to  fall  again  to  nine  cents,  years  there- 
after. 

The  commercial  miners  took  advantage  of  this 
price,  and  rushed  their  ores  to  market;  they  recog- 
nized that  the  logical  price  of  copper,  in  a  healthy 
demand,  is  not  over  seventen  cents  per  pound. 
Finally,  there  came  the  inevitable  slide,  commenc- 


-An  electric  hoist  in  a  Commercial  Mine.  This  is  over  a  shaft  now  2,000  feet  deep. 


i 


ROCKS  IN  THE  ROAD  TO  FORTUNE       306 

ing  in  August,  1907,  Commercial  miners  welcome 
this  decline.  This  is  a  strange  assertion  but  it  is 
true.  For  through  the  decline  was  foreseen  a 
sounder  market  for  copper,  through  legitimate 
extraction.  It  was  a  fact  that  production  was  far 
in  excess  of  the  demand,  but  is  was  a  false  produc- 
tion. There  was  no  profit  in  mining  much  of  the 
copper  that  was  finding  its  way  to  the  open  markets, 
thus  making  the  load  too  heavy  for  the  manipula- 
tors. The  sixty  commercial  mines  of  America  were 
not  causing  the  burden.  There  were  other  interests 
affecting  the  supply.  Mexico  was  pouring  in  its 
metal.  Then  there  were  hundreds  of  worthless 
prospects  upon  the  eastern  market  selling  shares; 
all  mining  a  little  copper  for  a  purpose,  and  loudly 
proclaiming  the  fact.  The  statement,  "we  are  ship- 
ping copper,"  gave  them  a  standing;  but  seldom,  if 
at  any  time,  did  these  announcements  carry  the 
"amount''  of  copper  they  were  shipping,  or  the 
actual  "cost"  of  its  production.  The  inexperienced 
were  buying  shares,  believing  because  they  were 
"shipping  copper"  that  they  were  into  real  copper 
mines.  But  in  truth,  it  was  their  money  that  was 
keeping  alive  the  operations.  For  the  copper  itself 
was  being  produced,  often  at  a  cost  of  over  a  dollar 
a  pound.  Rut  its  production  gave  the  promoter  the 
ammunition,  which  was  commonly  called  his 
"literature."  If  the  investor  had  known  sufficient 
of  the  mining  industry,  to  have  asked  the  plain  ques- 
tion, "How  much  copper  are  you  producing?"  and 
"How  much  does  it  cost  to  market  it?"  no  man  would 


306  ROCKS  IN  THE  ROAD  TO  FORTUNE 

be  so  foolish  as  to  buy  shares  in  a  mine  that  is  mak- 
ing copper  at  a  cost  greatly  in  excess  of  its  selling 
price. 

When  the  decline  came,  people  stopped  buying 
these  prospect  shares.  Then  this  artificial  produc- 
tion ceased.  A  few  shareholders  were  inveigled 
into  buying  at  a  lower  figure  upon  the  argument 
that  "the  time  to  buy  is  at  the  time  when  the  stock 
is  low,"  but  the  majority  of  people  do  not  do  this. 
They  get  frightened,  and  they  take  the  loss  that  is 
not  necessary,  they  should  not  have  bought  in  the 
first  place.  But  all  this  is  beneficial  to  the  legiti- 
mate industry.  This  artificial  production  has 
ceased.  And  it  is  doubtful  if  the  prospects  will  ever 
be  opened  again  in  this  generation;  for  once  con- 
fidence is  lost,  it  is  hard  to  regain.  These  non- 
commercial producers  were  adding  considerable  to 
the  world's  supply.  But  it  is  now  ancient  history. 
Without  the  money  supplied  by  the  share  buyers, 
they  cannot  be  worked,  and  eventually,  the  product 
of  the  United  States  will  again  come  from  the  old 
commercial  producers  and  the  new,  but  more  mod- 
ernly  equipped,  low  grade,  concentrating  propo- 
sitions of  Utah,  Nevada,  Arizona,  Montana,  and 
British  Columbia;  but  all  of  the  latter  are  yet  to 
make  good  in  commercial  activity. 

A  review  of  the  literature  put  out  by  these  embry- 
onic promoters  of  copper  prospects  show  that  they 
are  built  entirely  on  unsound  lines.  In  their  effort 
to  attract  the  attention  of  the  investor,  they  use  the 
mo.st  extravagant  assertions  relative  to  the  value  of 


ROCKS  IN  THE  ROAD  TO  FORTUNE        307 

the  ore  in  the  prospects.  The  fashionable  argu- 
ment used  is,  "We  can  make  copper  for  eight  cents 
a  pound;  as  it  is  selling  for  twenty-four  cents,  our 
profits,  consequently  will  be  enormous."  Here  is  a 
bald  assertion  that  the  records  of  copper  mines  do 
not  bear  out.  Prospects  thus  advertised,  without 
even  knowing  that  the  ore  is  in  commercial  bodies, 
without  discussing  the  cost  of  opening,  or  the  equip- 
ment, are  placed  before  the  public  as  bound  to  be 
commercial,  and  are  capitalized  all  the  way  from 
one  million  to  ten  million  dollars.  The  writer  has 
known  of  cases  where  large  shipments  of  rich  sur- 
face ore  has  been  made  for  the  purpose  of  trying  to 
convince  the  stockholders  that  they  had  copper 
mines,  in  several  cases  eight  or  ten  carloads  of  ore, 
running  from  twenty-five  to  thirty-five  per  cent., 
have  been  shipped  as  evidence  of  the  enormous 
values  contained  in  the  prospects. 

I  do  not  deny  that  there  are  masses  of  very  rich 
glance  ore  on  the  surface  of  many  prospects;  but  the 
experience  of  many  years  has  proven  that  this  class 
of  ore  does  not  go  down.  The  commercial  miner 
looks  for  the  permanent  product,  which  is  generally 
three  to  four  per  cent,  sulphide  ores.  Rich  ore  often 
occurs  as  lenses  in  the  bodies  of  the  lower  grade 
ores  found  at  great  depth,  but  I  do  not  know  of  a 
commercial  mine  anywhere  in  the  world  that  has 
carried  this  class  of  ore  through  its  life.  Con- 
sequenly,  the  capitalization  based  upon  such  evi- 
dence, without  a  proper  opening  of  the  properties, 
is  wrong.     The  rich  ore  simply  acts  as  a  fuel  for  the 


308   ROCKS  IN  THE  ROAD  TO  FORTUNE 

fire  of  the  promoter.  If  500,000  tons  of  ore  is  taken 
from  a  mine,  shipped  to  smelters  at  a  dead  loss,  it 
would  have  been  better  not  to  have  shipped  at  all. 
But  the  statement,  "we  have  produced  |500,000  of 
copper  ore  already,"  is  the  bait  used  to  ensnare 
investors.  These  rich  bodies  of  ore  found  at  the 
surface  do  not  deceive  the  commercial  miner.  They 
are  found  all  over  Arizona,  in  small  lenses;  Alaska 
is  noted  for  its  fabulously  rich  surface  copper, 
which,  however,  does  not  extend  to  great  depth. 

It  may  surprise  the  reader  when  I  say  that  the 
bulk  of  the  production  of  copper  won  from  commer- 
cial mines,  is  from  properties  carrying  ore  running 
about  three  and  one-half  per  cent,  per  ton,  on  the 
average.  The  same  advice  relative  to  the  value  of  a 
gold  prospect  and  its  ore  showing  applies  to  copper 
prospects;  for  until  its  ore  bodies  are  well  opened, 
its  intrinsic  values  cannot  be  computed,  and  inves- 
tors should  overlook  the  reference  to  the  "high  grade 
ores"  so  boldly  presented  by  promoters  as  evidence 
of  the  commercial  value  of  their  prospect. 

The  Anaconda  mine,  that  has  paid  |32,000,000  in 
dividends,  works  on  three  and  one-fourth  per  cent, 
ore;  the  Calumet  and  Hecla,  that  has  paid 
1105,000,000  in  dividends  runs  on  two  and  one-half 
per  cent,  ore;  the  Tamarack  mine,  that  has  paid 
19,000,000  in  dividends,  works  on  one  and  one-half 
per  cent,  ore;  and  the  Mohawk  mine  works  on  less 
than  one  per  cent,  ore,  while  many  of  the  mines  now 
in  process  of  development  in  Utah,  Arizona,  Nevada, 
Montana,  and  British  Columbia  are  figuring  upon  a 


ROCKS  IN  THE  ROAD  TO  FORTUNE       309 

product  from  bodies  running  less  than  two  per  cent., 
figuring  first  upon  concentration,  then  smelting. 

Embryo  copper  mines  are  the  playthings  of  the 
rich,  who  are  able,  by  their  capital,  to  make  them 
commercially  valuable.  But  a  poor  man  had  better 
leave  the  development  of  a  copper  prospect  severely 
alone.  The  greatest  mines  are  profitable  only  when 
the  productions  enter  into  the  thousands  of  tons  per 
day.  There  is  not  a  big  copper  bonanza  in  the  world 
that  is  working  on  a  tonnage  of  less  than  200  tons 
per  day.  It  is  only  by  making  an  enormous  output, 
and  with  labor-saving  devices  at  hand,  that  the  im- 
mense profits  accredited  to  copper  mines  are  won. 

That  the  inexperienced  investor  may  be  able  to 
meet  the  argument  of  the  copper  promoter  when  he 
places  before  him  prospects  that  he  claims  will  run 
high  in  values,  ask  the  following  questions: 

How  many  thousand  tons  of  this  ore  have  you 

actually  shipped? 
How  many  thousand  feet  of  lateral  and  explor- 
ation work  have  you  done,  that  you  know 
the  extent  of  your  ore  bodies? 

For,  in  copper  mining,  until  fully  5,000  feet  of 
underground  work  has  been  accomplished,  and  that 
work  demonstrating  the  value  of  the  ore  in  commer- 
cial bodies,  the  copper  prospect  is  not  worthy  of  a 
poor  man's  investment.  The  risk  is  too  great — 
that  is,  if  he  considers  it  from  the  point  of  an  in- 
vestment. If  he  wants  to  speculate,  that  is  another 
thing;  advice  is  of  no  use  to  him. 

I  have  cited  the  low  grade  ores,  upon  which  the 


310   ROCKS  IN  THE  ROAD  TO  FORTUNE 

commercial  mine  works,  and,  as  an  illustration  of 
how  feeble  are  the  efforts  of  the  man  who  proposes 
to  work  a  copper  mine  with  limited  capital,  I  will 
explain  the  value  of  a  "per  cent"  of  copper.  It 
means  that  if  ore  contains  one  per  cent  of  copper, 
one  ton  of  the  crude  mineral  bearing  rock,  will  show 
twenty  pounds  of  the  "red"  metal;  and,  as  copper 
has  sold  as  low  as  nine  cents  and  as  high  as  twenty- 
five  cents,  no  man  can  set  a  figure  that  he  can  be 
sure  will  be  maintained.  If  copper  is  sold  at  eleven 
cents  a  pound— as  it  did  sell  only  five  years  ago — 
it  means  that  each  ton  of  one  per  cent  ore  is  worth 
f2.22,  from  which  the  cost  of  mining,  maintaining 
and  marketing  must  be  deducted.  If  there  was  any- 
thing staple  in  the  price  of  copper,  a  man  could 
better  judge  the  value  of  his  ore  bodies.  But  the 
great  mistake  made  by  promoters,  and  even  by 
some  commercial  miners,  is,  that  they  figure  their 
cost  of  production  and  earning  capacity  with  copper 
at  twelve  and  one-half  cents  a  pound.  In  opening 
a  prospect,  local  conditions  considered,  the  pro- 
moter should  figure  copper  at  eleven  cents  a  pound 
as  a  selling  price.  Then  he  is  reasonably  sure  of  not 
running  behind — provided  he  has  a  million  dollars 
at  command,  to  properly  open  the  mine  and  equip 
it.  It  is  needless  to  say  that  this  is  a  radical  posi- 
tion to  take  relative  to  the  price  of  copper,  saying: 
"It  is  bound  to  go  up  again."  That's  the  share-sel- 
ler's argument.  But  the  commercial  miner  knows 
there  is  nothing  staple  in  copper  prices. 

The  writer  asserts,  that  the  rise  and  fall  of  any 


ROCKS  IN  THE  ROAD  TO  FORTUNE       311 

commodity  should  be  figured  on  its  average,  and  not 
its  highest  or  its  lowest  quotation.  During  an  ex- 
perience of  thirty-one  years,  I  have  witnessed  a 
wide  variation  in  copper  values.  My  first  experi- 
ence was  at  Tombstone,  Arizona,  in  1880,  when 
twenty-five  cent  copper  ruled.  I  saw  nine  cent  cop- 
per a  few  years  thereafter.  The  author  sold  copper 
in  Januarj^  1907,  from  a  Colorado  mine,  at  twenty- 
four  cents  per  pound,  and  seven  months  later,  sold 
from  the  same  mine,  at  thirteen  cents  per  pound. 
Copper  did,  however,  at  one  time — many,  many 
years  ago — sell  at  fifty  cents  a  pound — I  think  just 
after  the  close  of  the  Civil  War. 

Copper  mining  is  not  all  profit.  It  costs  consider- 
able to  maintain  a  ground  after  the  ore  is  worked 
out.  Then  again,  copper  mines  are  not  inexhaust- 
ible— as  some  of  our  promoter  friends  claim.  One 
of  the  largest  producing  mines  in  the  United  States 
faces  a  total  charge  of  |3.50  per  ton  simply  to  lay 
that  ore  on  the  surface — and  the  deeper  the  mine, 
the  greater  the  cost. 

I  cite  these  matters  that  the  poor  man  who  be- 
lieves what  the  "penny  promoter"  tells  him  about 
getting  rich  by  a  small  investment  in  copper  mines, 
may  understand  that  all  men  are  not  truthful. 

As  near  as  I  can  figure,  there  has  been  about 
three  thousand  two  hundred  copper  mines  organized 
in  the  United  States.  As  near  as  the  writer  can 
learn  there  are  only  two  hundred  and  sixty-one 
"commercial"  copper  mines  in  the  world,  and  of 
these,  some  of  them  will  not  pay  ten  per  cent  on 


312  ROCKS  IN  THE  ROAD  TO  FORTUNE 

even  |100,000.  It  is  believed  that,  of  the  two  hun- 
dred and  sixty-one  mines  stamped  as  ''commercial," 
fully  seventy-five  of  them  do  not  produce  f25,000 
per  annum,  gross  value.  In  our  great  United 
States,  held  up  to  the  world  as  the  "King  of  Copper 
Producers,"  there  is  only  about  sixty  producing 
mines;  and  while  the  copper  production  in  1907  is 
estimated  to  have  been  791,000  tons — about  one 
hundred  and  seventy-three  mines  scattered  over  the 
world — produced  the  bulk  of  that  tonage.  As  to 
the  future  value  of  copper — that  will  depend  en- 
tirely upon  the  demand;  for,  not^^ithstanding  the 
search  for  a  substitute,  copper  is  still  supreme  as  an 
electrical  conductor,  and  is,  unquestionably,  the 
only  true  alloy  of  brass  and  bronze. 

In  a  previous  chapter,  the  writer  has  stated  that 
prospects  listed  on  exchanges  do  not  reflect  their 
actual  value  by  the  quotations.  The  same  applies 
to  copper  shares.  A  distinction  may  be  drawn  in 
favor  of  the  precious  metal  dividend-paying  stocks 
that  generally  hold  a  regularity  of  quotations.  Not 
so  in  copper  mining — even  among  the  great  pro- 
ducers; because  there  is  more  manipulation  in  the 
producing  copper  shares  than  there  is  in  the  divi- 
dend-paying precious  metal  shares.  Among  Ex- 
change members,  it  is  largely  recognized  that  quota- 
tions on  copper  shares  are  maintained  more  for  the 
ability  of  the  operators  to  borrow  money  from 
banks  using  the  shares  as  collateral,  rather  than 
to  reflect  the  intrinsic  value  of  the  property  from 
an  earning  standpoint.    Thus,  speculation  in  securi- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       313 

ties,  of  even  the  large  commercial  copper  prop- 
erties, are  not  to  be  indulged  in  by  the  man  of 
limited  means,  unless  he  is  in  position  to  watch  the 
market  every  day,  and  has  a  level  head — which  no 
greedy  man  has — and  be  satisfied  with  a  fair  profit, 
not  endeavor  to  become  a  Clark  on  a  hundred  dol- 
lars. Otherwise  he  is  gone — as  sure  as  the  sun 
rises — it  is  only  a  matter  of  time.  If  those  I  met 
last  year,  who  deplored  their  inability  to  load  up 
on  copper,  happen  to  read  this  book,  they  will,  I 
am  sure,  feel  that  the  hand  of  Providence  was  in 
their  poverty. 

If  two  brothers,  each  with  |10,000,  entered  a 
broker's  office  during  the  high  period  of  1907;  one 
buying  ten  shares  of  Calumet  and  Hecla — the 
mines  that  have  paid  |105,000,000  in  dividends,  and 
to-day  one  of  our  greatest  producers,  paying  |1,000 
per  share;  the  other  brother  saying:  "I  think  the 
stock  too  high,  so  I  will  sell  ten  shares  short,"  and 
both  of  them  closed  their  accounts  at  the  low  period 
of  the  year,  one  of  them  would  have  |5,350,  and  the 
other  one  $15,350. 

A  study  of  the  following  high  and  low  prices  for 
the  listed  coppers  in  1907 — the  total  loss  of  which, 
through  the  decline  of  all  the  coppers  at  one  time, 
figuring  capitalization,  etc.,  being  |650,000,000 — 
will,  I  believe,  cause  the  reader  to  agree  with  me 
that  mines  or  prospects  have  nothing  to  gain  by 
speculation — except  for  those  who  speculate. 


314       ROCKS  IN  THE  ROAD  TO  FORTUNE 

High.  Low. 

Adventure    61/2  62  1/2 

Allouez  741/2  19 

Amalgamated   121 1/4  41  3/4 

Atlantic 22  6  5/8 

Bingham 37  4 

Boston  Consolidated 34  1/2  8  5/8 

Butte  Coalition  39 1/2  10 

Calumet  and  Arizona 198  89 

Calumet  and  Hecla 1000  535 

Centennial   47  15 

Copper  Range 105  44  1/4 

Daly-West    20  1/2  7  3/8 

Franklin    29  3/8  6 

Granby    151  65 

Greene-Ca.nanea    25  5 

Isle   Royale 361/2  111/2 

Mass  Mining 91/4  21/4 

Michigan   241/2  6  3/4 

Mohawk    97  37 

Nevada  Cons 20  1/2  61/4 

North   Butte 120  30 

Old  Dominion 63  18 

Osceola   181  71 

Parrot    38  9 

Quincy   148  70 

Shannon   24  3/8  7 

Superior  and  Pittsburg 29  7 

Tamarack  170  51 

Trinity   42 1/4  9  1/2 

United  Copper 77  1/4  71/4 


ROCKS  IN  THE  ROAD  TO  FORTUNE       315 

High.         Low. 

United  States  Smelting 70  24  3/4 

United  States  Smelting  pfd 49  27  3/4 

Utah  Cons 79  25  1/2 

Victoria 11 5/8  3  1/2 

Winona    14  2  5/8 

Wolverine 201  92  1/2 

The  mines  represented  in  the  above  list  are  as  val- 
uable to-day  as  they  were  when  quoted  at  the  high- 
est figures  last  year.  It  proves  that  the  intrinsic 
value  of  listed  mines  are  not  considered,  but  their 
quotations  are  ruled  by  sensational  advances  in  the 
price  of  metals,  reported  strikes,  or  shortages  of  sup- 
ply. Some  person  bought  these  shares  at  the  high 
figure,  naturally  some  one  was  injured.  The  man 
residing  in  some  interior  city,  speculates  in  listed 
Copper  stocks,  he  will  have  little  time  to  sleep;  not 
for  a  moment  can  his  eye  be  taken  from  his  gun. 
He  may  then  win,  but  it  will  not  be  mining,  it  will 
be  speculating  in  quotations. 

With  the  knowledge  that  'a  man  who  gives  advice 
is  a  fool  upon  general  principles,'  the  writer  ven- 
tures the  opinion,  or  rather  his  belief,  that  a  man 
of  limited  means  may  make  a  lot  of  money  by  assist- 
ing in  the  primary  opening  of  a  copper  prospect, 
upon  low  capitalization,  with  the  intention  of  sell- 
ing out  to  large  interests,  after  the  ground  has 
proven  fairly  well  as  to  ore  contents;  where,  also, 
he  receives  an  equitable  division  of  the  interest  for 
the  risk  he  takes  in  opening  the  ground,  as  stated  by 


316  ROCKS  IN  THE  ROAD  TO  FORTUNE 

the  author  in  his  chapter  on  the  "Equitable  way  to 
mine."  But  when  it  comes  to  the  point  of  develop- 
ing and  equipping  a  copper  mine,  it  is  better  to  leave 
that  task  to  the  big  operators. 

If  you  are  asked  to  buy  shares  in  copper  prospects, 
think  hard  and  long,  don't  refuse  on  the  spur  of  the 
moment,  but  don't  jump,  think  a  while;  with  your 
pencil  and  pad  as  your  advisers,  figure  it  out.  Sleep 
over  it;  and  see  if  you  are  getting  in  the  prospect  at 
the  point  where  your  money  is  to  be  judiciously  ex- 
pended in  underground  work,  with  a  view  of  prov- 
ing the  prospect  worthy  of  the  immense  sums  needed 
in  its  development  and  equipment,  Avhich  rich  men 
are  always  ready  to  supply  when  they  can  see  actual 
evidence  of  the  making  of  a  mine;  but  for  a  few  men 
of  small  capital  to  try  to  make  a  copper  mine  is  folly. 

There  may  be  mines  that  carry  an  average  of 
twelve  per  cent,  of  copper  in  commercial  bodies,  but 
the  writer  has  never  heard  of  them,  fie  has  known 
of  substantial  shipments  of  that  grade  of  ore  from 
many  mines,  but — it  was  only  the  "show"  ore.  Like 
a  certain  general,  chiding  some  timid  officers,  say- 
ing, "You  fellows  are  fine  on  dress  parade,  but  in 
actual  service  you  are  not  worth  a  darn."  It  is  the 
same  with  high  grade  ore  in  a  big  commercial  mine 
— the  rank  and  file,  the  low  grades,  do  the  fighting 
that  results  in  victory. 

The  writer  is  not  infallible;  he  only  gives  his 
opinions,  the  simple  views  of  one  man,  himself  cov- 
ered with  copper  scars.  He  is  entitled  to  a  little 
distinction,  like  was  the  gentleman  of  Hebrew  ex- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       317 

traction,  who  had  placed  "F.F.F.F.F."  behind  his 
name  upon  his  visiting  card,  which,  he  explained, 
with  a  look  of  pride,  stood  for  three  failures  and  two 
fires.  The  author  can  put  three  F's — two  Coppers, 
and  one  abandoned  mine.  But  a  man's  mistakes 
should  not  prevent  him  from  trying  to  help  others, 
by  placing  a  warning  post  over  some  bog  of  quick- 
sand that  he  "wollered"  in. 

In  Copper  ventures,  like  the  unsound  promotions 
in  precious  metal  mines,  the  money  does  not  often 
go  into  the  ground.  Perhaps,  if  it  did,  the  result 
might  be  more  remunerative  to  the  small  investor. 


CHAPTER  XXV. 

THE  EQUITABLE  WAY  TO  MINE 

THE    UNSOUND    PROMOTER— HIS    NECESSI- 
TIES AND  INFLUENCES  IN  BOOM  CAMPS. 

In  a  previous  chapter,  the  writer  has  asserted, 
that  if  one  hundred  men  were  eliminated  from  the 
business  of  mine  financing,  or  made  to  understand 
that  ore  extraction  is  a  business  and  not  a  plaything 
there  would  be  fewer  failures  and  more  profit  for 
operator  and  investor.  For  my  part,  I  would  prefer 
the  men,  now  marked  as  unsound,  to  remain  in  the 
business,  provided  they  would  get  away  from  exag- 
geration and  unreasonable  demand,  and  learn  some- 
thing about  the  practical  side  of  the  industry.  Some 
of  these  promoters  are  bright,  active  and  ingenious, 
such  men  are  of  advantage  to  any  industry,  when 
their  talents  are  properly  applied. 

The  author,  perhaps,  is  acquainted  with  more  pro- 
moters than  any  miner  in  the  United  States;  his 
public  appearances  in  the  interest  of  mining,  his  ef- 
forts to  sell  prospects  and  soliciting  capital  for 
mill  or  smelter  construction,  have  naturally  brought 
him  in  touch  with  really  all  of  those  whose  natural 
brain  capacity  causes  them  to  lead.  One  reason  for 
my  refusal  to  make  pointed  reference  is  that  much 

318 


ROCKS  IN  THE  ROAD  TO  FORTUNE       319 

of  my  knowledge  of  the  ways  of  the  Eastern  pro- 
moter has  been  won  from  them  direct,  many  being 
boastful  of  their  money  raising  achievements.  Per- 
haps they  may  have  thought  that  I  was  of  their 
stock  selling  creed,  and  thus  imparted  to  me  many 
of  their  methods  which  otherwise  would  have  been 
jealously  guarded,  when,  in  truth,  I  never  sold 
$100,000  of  mining  stock  in  my  entire  thirty-one 
years  of  experience,  and  that  which  I  did  sell,  was 
when  I  was  like  a  crowing  babe.  And,  being 
ashamed  of  my  lack  of  reason,  where  failure  fol- 
lowed, I  have  endeavored  to  clear  my  conscience  by 
voluntarily  giving  the  purchasers  of  that  limited 
amount,  something  better.  A  man's  honest  mis- 
takes can  be  excused,  but  that  which  is  inexcusable 
is  a  persistence  in  following  the  unsound  system 
when  one  knows  it  is  unsound. 

There  are,  no  doubt,  honest  men  engaged  in  pro- 
spect promotions,  who  accept  as  their  right,  the 
excessive  commissions  so  burdensome  to  mining, 
that  they  are  taught  that  it  is  only  the  recognized 
right  of  a  broker.  The  writer  was  informed  by  a 
man  who  had  raised  nearly  a  million  and  a  half 
dollars,  that  before  he  knew  the  truth,  he  believed 
that  mining  was  the  gateway  to  positive  wealth, 
there  was  but  little  risk,  that  any  man  who  pos- 
sessed a  mine  was  fortune  favored,  that  at  night 
he  would  dream  of  the  gold  sticking  out  of  the 
veins,  and  he  believed  every  wild  assertion  he  made. 
Such  men  are  the  creatures  of  circumstances;  it  is 
an  affliction,  the  lack  of  reasoning  powers.     But 


320  ROCKS  IN  THE  ROAD  TO  FORTUNE 

there  are  men  in  this  business  that  are  dishonest 
clear  through;  they  know  that  they  do  not  give  a 
fair  return,  yet  persist  in  fostering  the  unsound. 
Men  who  have  felt  the  arm  of  the  law  are  more 
dangerous,  for  punishment  is  not  a  novelty;  they 
are  bolder,  the  results  of  their  operations  far  reach- 
ing. 

The  writer  believes  that  ninety  per  cent,  of  the 
mistakes  made  by  prospect  promoters  can  be  attri- 
buted to  inexperience  and  lack  of  reason,  coupled 
with  an  unreasonable  desire  for  more  than  they  are 
really  entitled  to,  their  mental  capacity  considered. 
It  is  useless  of  any  man  to  explain  to  me,  that  his 
labors  are  worth  forty  or  fifty  per  cent.  Men  say 
that  it  is  impossible  to  raise  money  at  a  less  charge. 
The  author  retorts,  that  as  the  mining  industry  prof- 
its but  little  and  the  promoter  is  the  sole  gainer,  be 
the  same  large  or  small,  why  continue  a  process 
that  is  built  upon  unsound  lines?  Why  not  allow 
mining  to  proceed  along  in  the  old-fashioned  way 
common  to  miners,  commercial  miners,  where  men 
raise  money  by  a  plain  personal  statement  of  facts, 
figure  the  amount  required,  and  apply  the  money 
in  actual  work,  thus  endeavoring  to  make  MINES. 
If  it  takes  all  the  investor's  principal  simply  to 
get  in  the  promoters  hands,  upon  the  assumption 
that  it  goes  into  mining,  why  not  leave  it  with  its 
owners  and  await  some  more  equitable  system  of 
promotion.  The  question  of  "self"  has  considerable 
to  do  with  modem  prospect  promotions,  and  the 
plain  blunt  truth  had  best  be  told. 


ROCKS  IN  THE  ROAD  TO  FORTUNE       321 

Behind  the  majority  of  unsound  promoters  lie 
the  result  of,  to  them,  new-born  personal  extrava- 
gance; those  having  little  personal  estate,  seek  to 
maintain  a  position  in  life  far  above  their  material 
worth  or  income.  A  broker,  earning  a  modest  com- 
petency in  some  other  avenue,  his  family  satisfied 
w^ith  the  even  tenor  of  their  ways,  becomes  a  pro- 
moter of  some  prospect,  and  immediately  follows 
the  complete  renunciation  of  the  simple,  though 
happy  life.  He  enters  a  new  sphere;  he  associates 
with  men  known  as  "spenders;"  to  maintain  his 
position  he  requires  more  money  in  a  month  than 
did  the  natural  plane  to  which  he  really  belonged, 
require  in  three  months.  His  necessities  become 
greater;  his  pride  is  swollen;  he  mingles  with  those 
who  are  able  to  spend,  through  their  own,  or  the 
resources  won  from  others,  and  he  must  become  a 
"spender"  himself — automobiles,  expensive  suppers, 
better  clothes,  elaborate  offices,  all  a  necessity  to 
maintain  the  dignity  of  a  modern  eastern  mine  pro- 
moter, who  generally  styles  himself,  "Banker  and 
Broker."  Either  the  mine  pays  for  this  display,  by 
a  natural  product  won  from  the  earth,  or  the  in- 
vestors pay  it.  Thus  is  born  the  "40  and  50  per 
cent,  commission"  and  greater  efforts  to  seduce  in- 
vestment, the  natural  caution  of  man  making  it 
more  difficult  to  interest,  consequently  great  cost 
of  floatation. 

The  writer  once  heard  a  man  bitterly  denouncing 
another  one,  making  the  remark  that  he  wished  be 
knew  some  way  to  bring  him  worry.       I  jokingly 


322  ROCKS  IN  THE  ROAD  TO  FORTUNE 

told  him  that,  if  he  really  wanted  to  do  the  man 
an  irretrievable  injury,  to  manage  in  aome  way  to 
have  him  become  a  prospect  promoter,  for  then  he 
would  always  live  beyond  his  means,  and  conse- 
quently would  always  be  unhappy. 

Many  men  want  reasonable  compensation  for 
their  services  outside  of  this  avenue  of  financing. 
In  ordinary  pursuits  they  would  perhaps,  be  earn- 
ing thirty  or  forty  dollars  per  week;  but,  when  they 
become  promoters,  their  self-esteem  enlarges,  they 
place  a  greater  value  on  their  services;  when  they 
make  failures,  they  are  ready  with  their  excuses, 
one  of  which  is  that  he  ''would  have  been  success- 
ful, but  'knockers'  had  spoken  ill  of  his  property, 
thus  curtailing  his  ability  to  sell." 

It  is  admitted  that  in  mining  circles,  as  is  the 
case  in  every  avenue  of  life,  there  are  small-souled, 
jealous-minded  individuals,  failures  themselves 
through  lack  of  energy  or  ability,  who  dislike  to 
see  any  man  prosper;  they  are  the  seed  from  which 
spring  assassins  of  character  and  property  values. 
But,  we  may  be  thankful  of  the  fact  that  there  are 
only  a  few  of  the  kind,  and  their  ilk  is  well  known. 
But  the  writer  does  not  know  the  proper  definition 
of  that  appellation,  "knocker,"  or  how  it  should  be 
applied.  I  have  had  experience  with  the  personal 
"knocker"  who  has  some  little  prospect  that  he 
desires  to  sell,  and  when  the  more  progressive 
miner  succeeds  in  attracting  the  attention  of  capital 
to  some  mine  or  prospect,  endeavors  to  decry  the 
property  by  saying  that  they  have  something  bet- 


ROCKS  IN  THE  ROAD  TO  FORTUNE       323 

ter,  just  over  the  hill,  that  can  be  bought  for  less 
money.  Generally,  these  are  old  worn-out  human 
fossils  without  sufficient  ambition  to  get  out  and 
work  up  a  sale  for  themselves.  But  I  cannot  re- 
concile the  word  to  everybody  who  does  not  express 
an  opinion  alike  to  the  man  who  is  selling  the  prop- 
erty. Men  differ  on  values,  speculative  and  mate- 
rial; each  man  has  his  right  to  opinion,  and  when 
asked  his  opinion,  it  should  be  given  as  an  honest 
one. 

As  ripened  experience  comes  to  us,  we  find  that 
the  word  is  applied  to  men  who  are  really  among 
the  best  citizens  of  mineral  bearing  regions.  The 
hold-up  man,  garroting  a  citizen,  may  term  the  in- 
dividual who  calls  the  police,  and  thereby  saves  the 
victim's  life  and  property,  a  "knocker."  Thus  the 
term,  in  the  eyes  of  some,  is  applied  to  the  scientist 
and  respectable  commercial  miner  who  does  not  ap- 
prove of  the  extravagant,  misleading  statements  and 
excessive  values,  who  when  asked  his  opinion,  gives 
it  upon  the  positive  evidence  as  he  sees  it,  after 
expressing  belief  in  the  ultimate  success  of  the 
prospect  involved,  but  not  in  positive  terms,  both 
fair  opinions,  but  not  acceptable  to  the  unsound 
promoter,  who  stamps  upon  him  the  brand  of 
"knocker."  In  "boom"  camps,  the  experienced  pro- 
moter endeavors,  in  the  beginning  of  his  operations, 
to  create  a  feeling  of  distrust  for  the  so-called 
"knocker."  To  such  an  extent  has  this  been  carried 
that  in  saloons  and  dance-halls  of  Western  towns 
have  been  placed  placards,  bearing  the  instructions: 
"Boost,  but  don't  knock."    This  is  a  capital  spirit 


324   ROCKS  IN  THE  ROAD  TO  FORTUNE 

in  booming  a  town,  for  there  is  some  material  value 
behind  even  swamp  land,  which  can  be  used  for 
planting  cranberries,  but  the  system  of  stiffling, 
the  cutting  off  the  air  that  feeds  the  light  of  in- 
vestigation, is  wrong.  I  believe  in  publicity,  of 
truthful  information  relative  to  mines.  If  a  vein 
shows  a  quarter  of  an  inch  of  very  rich  gold  ore,  it 
is  not  believed  that  it  should  be  classed  at  4  ft.  of 
mill  ore.  He  does  not  believe  that  the  temporary 
money  of  foolish  investors,  brought  into  a  district 
by  misrepresentation,  will  lay  the  foundation  for 
permanent  success  in  any  mining  state  or  territory. 
Men  who  make  wild  assertions,  generally  spend 
more  money  in  convincing  the  investor  than  they 
do  in  fighting  nature  in  the  search  for  ore. 

The  writer  does  not  believe  it  is  right  to  keep  the 
truth  of  a  mining  camp  in  the  dark.  When  open 
investigation  is  not  permitted,  yet  at  the  same  time, 
the  sale  of  shares  loudly  heralded  by  the  promoter, 
it  savors  of  the  highwayman  who  loves  the  shadow, 
who  does  not  attack  his  victim  in  the  glare  of  the 
arc  light.  In  camps  sensationally  boomed,  it  is  safe 
to  say  that  the  extravagant  literature  and  wild 
assertions  as  to  values  emanate  from  four  or  five 
persons,  upon  whom  the  responsibility  directly 
rests.  But,  is  there  not  a  deeper  responsibility 
resting  upon  the  inhabitants  themselves?  They 
surely  read,  and  know  the  representations  are  made 
for  the  sole  purpose  of  inducing  the  man  of  limited 
means  to  invest.  They  know  that  a  few  tons  of 
highgrade  grass-root  ore  does  not  make  a  mine,  and 
if  the  claim  DID  expose  large  bodies  of  flOO  ore, 


ROCKS  IN  THE  ROAD  TO  FORTUNE       325 

there  would  be  no  necessity  to  sell  stock,  and  if  the 
prospect  DID  NOT  show  ore  in  paying  bodies,  that 
it  was  not  a  mine  and  worth  only  a  prospect's  figure. 
The  writer  has  heard  his  views  decried  in  West- 
ern camps,  by  men  who  claim  that  the  buyers  of 
these  "penny"  mining  stocks  are  determined  to  get 
rid  of  their  money.  One  gentleman  said  to  me,  "Let 
them  spend  their  money;  if  we  don't  get  it  out  here, 
some  other  mining  man  will  get  it  in  some  other 
district."  If  this  logic  is  sound,  then  I  must  admit 
that  I  am  wrong;  but  I  cannot  reconcile  as  right, 
the  efforts  of  a  group  of  prom.oters,  who  for  months 
ahead,  flood  the  country  with  personally  controlled 
papers,  vaguely  hinting  that  some  enormously  rich 
discovery  has  been  made,  finally  to  spring  the  sen- 
sational find,  sell  out,  and  then  let  chance  deter- 
mine the  commercial  value  of  the  prospect. 

I  admit  that  often  very  rich  ore  is  found  at  the 
surfaces,  so  rich,  that  men  working  in  the  prospect 
steal  it;  but  generally  this  class  of  ore  is  irregular 
and  of  unknown  extent,  consequently  unreliable  as 
commercial  ore  producers.  But  it  seems  strange  to 
a  commercial  miner,  that  any  prospect  showing 
large  bodies  of  even  |50  ore,  located  in  any  part  of 
the  United  States,  can  have  a  sound  reason  for 
spending  thousands  of  dollars  in  its  publicity  "pro- 
motion," and  vending  of  its  shares  at  bargain  prices. 
For  |50  ore  is  highly  commercial  in  every  district  in 
the  United  States  outside  of  Alaska. 

New  camps  are  welcome;  without  their  coming  the 
industry  will  soon  die  out.  That  which  is  not  wel- 
come   is  the  flamboyant  advertising  that  deceives. 


326   ROCKS  IN  THE  ROAD  TO  FORTUNE 

Once  in  a  thousand  times  these  ventures  prove 
profitable,  but  generally  it  is  the  result  more  of 
"luck,"  than  science,  and  it  is  claimed  that  the 
"luck"  theory  no  longer  has  a  place  in  mining.  To 
continue  the  "luck"  theory  longer  is  an  insult  to 
the  intelligence  of  the  able  scientist,  who  has 
mastered  many  of  the  secrets  of  nature  and  made 
mineralogy  an  open  book. 

The  desire  of  the  author  is  that  the  layman  may 
enter  the  profit-earning  industry  of  mining  with  a 
reasonable  chance  to  win  success.  This  book  has 
been  written  in  the  hope  that  it  will  create  the 
"pencil  and  pad"  habit.  It  is  not  intended  to  ad- 
vance theories,  but  to  express  facts,  as  I  have  found 
them.  The  author  is  a  dismal  failure  as  a  literary 
genius.  What  favorable  reception  "Rocks  in  the 
Road"  receives  will  be  due  to  the  homely  expres- 
sions, upon  what  he  considers  the  burdens  of  the 
industry.  My  views  may  not  be  shared  by  all.  The 
writer  has  made  no  attempt  at  establishing  a  creed; 
that  which  is  here  written  are  the  thoughts  of  but 
one  man.  I  did  not  want  to  write  this  volume,  but 
after  waiting  years  for  others  to  write,  finally  at- 
temped  it. 

Those  whom  I  believe  injure  the  reputation  of 
mining,  advance  the  opinion  that  no  book  can  ob- 
tain sufficient  circulation  to  reach  even  100,000  peo- 
ple, while  there  are  millions  who  buy  mining  shares. 
The  author,  however,  has  the  hopes  that  if  the 
reader  believes  my  motive  sincere,  that  what  I  say 
is  true,  he  will  bring  this  volume  to  the  notice  of 


ROCKS  IN  THE  ROAD  TO  FORTUNE       327 

others  and  thus,  perhaps,  a  little  can  be  accom- 
plished. 

As  to  remedies,  the  reader  can  suggest  them.  I 
believe  there  is  a  more  equitable  form  of  mine  pro- 
motion, but  beyond  marking  out  the  way  to  investi- 
gate, by  questions  that  go  to  the  root,  the  writer 
does  not  desire  to  venture,  beyond  stating  his  be- 
liefs, the  soundness  of  which  the  investor  may  pass 
upon. 

When  a  man  starts  out  to  advise,  in  either  love 
or  money  affairs,  he  is  handling  delicate  subjects, 
not  often  thanked  for  good  advice  in  the  first,  and 
always  receives  condemnation,  and  no  belief  in  good 
intent,  if  he  fails  in  the  second.  My  natural  in- 
stincts advise  me  to  state  my  beliefs  only,  leaving 
the  former  to  judge. 

The  broker  should  have  some  knowledge  of  prac- 
tical mining,  to  enable  him  to  form  his  own  opin- 
ions as  to  the  truth  or  falsity  of  the  reports  made 
upon  mines,  prospects,  mills  or  smelters. 

The  investor  should  leave  listed  or  "curb"  pros- 
pect shares  to  those  that  follow  speculation,  and  in 
considering  the  purchase  of  shares,  figure  the  cash 
valuation  by  the  number  of  shares,  and  never  pay 
for  a  prospect,  slightly  developed,  a  sum  equal  to 
the  cost  of  a  producing  mine. 

Every  sliver  in  the  earth,  showing  mineral,  is 
worthy  of  financial  support,  to  a  limited  extent,  and 
its  owner  has  the  supreme  right  to  invite  capital 
in  its  development,  upon  a  modest  financial  valua- 
tion, but  not  upon  enormous  capitalizations.    First, 


328   ROCKS  IN  THE  ROAD  TO  FORTUNE 

the  value  of  the  mineral  lode  should  be  proven,  at 
least  to  a  reasonable  extent,  after  which  it  is  time 
enough  to  fix  its  commercial  value.  Give  the  in- 
vestor a  large  share,  for  the  risk  he  takes  and  his 
confidence  in  nature. 

When  a  prospect  is  undertaken,  have  some  ob- 
jective point,  figure  upon  its  cost,  and  have  the 
amount  underwritten,  or  reasonably  in  sight,  before 
starting  with  a  few  dollars  and  trusting  to  luck  to 
obtain  the  balance.  Many  good  properties  are  to- 
day lying  idle  on  account  of  unsound  systems  of 
financing. 

The  excessive  commissions  charged  by  brokers 
strangle  the  venture  before  it  starts  fairly  to  exist. 
There  is  no  business  in  the  world  that  can  have 
plain  sailing  towards  success,  burdened  down  with 
a  debt  for  which  it  received  no  benefit. 

Promoters  are  unreasonable  in  their  demands,  the 
public  likewise  in  their  expectations;  they  both  put 
upon  mining  more  than  even  this  rich  profit-sharing 
industry  can  sustain.  I  have  seen  promoters,  to 
whom  I  have  offered  rich  mine  leases,  requiring  but 
|25,000  as  cash  investments,  expect  dividends  of 
twelve  per  cent,  upon  a  valuation  of  capitalization 
of  1500,000. 

It  is  believed  that  enormous  capitalization  is  the 
curse  of  mining,  even  when  the  shares  are  sold 
at  a  few  cents  each.  Lower  values  and  more  cash 
is  the  sounder  system.  The  first  has  been  tried  and 
found  wanting,  and  the  latter  tried  for  years  and 
found  sound. 


ROCKS  IN  THE  ROAD  TO  FORTUNE       329 

The  writer  believes  that  the  investor  should  have 
monthly  reports  as  to  the  progress  of  work,  and 
that  where  prospects  are  to  be  developed,  contracts 
should  be  let,  for  then  the  expense  of  a  number  of 
ofiicials  can  be  dispensed  with,  and  those  furnish- 
ing the  money  will  know  just  how  much  work  their 
funds  will  pay  for.  Many  good  prospects  are 
strangled  for  lack  of  the  "sinews  of  war"  that  are 
absorbed  by  expensive  superintendents,  etc. 

A  mill  should  never  be  erected  until  at  least  2,000 
feet  of  development,  showing  ore,  has  been  prose- 
cuted. 

And  last,  and  most  vital  of  all,  the  point  con- 
sidered most  just;  the  investor  who  supplies  the 
money  to  open  a  prospect  or  erect  a  mill,  should  not 
only  hold  preferred  shares,  but  his  entire  principal 
should  be  returned  to  him,  from  the  first  net  profits, 
before  the  residue  shareholders  receive  a  dollar. 
For,  without  the  money  of  the  investor,  the  pros- 
pect would  perhaps  forever  remain  a  worthless 
seam  of  ore,  unless  the  owner  developed  the  same 
with  his  own  resources. 

The  present  system  of  prospect  promotion  brings 
little,  if  any,  credit  to  the  industry;  it  takes  from 
the  investor  the  golden  opportunity  to  reap  wealth 
from  mines  which  nature  intended  should  be  his 
heritage;  failing  to  meet  success,  under  a  system 
that  can  result  in  nothing,  other  than  failure 
through  inexperience,  greed  and  extravagant  ex- 
penditures, he  loses  courage,  confidence,  he  retires 
from  what  he  considers  the  mining  field;  thus  his 


330  ROCKS  IN  THE  ROAD  TO  FORTUNE 

chances  for  the  betterment  of  his  financial  condi- 
tion, through  winning  wealth  from  the  earth,  are 
closed  to  him  by  his  own  sad  experience,  when  he 
has,  in  truth,  not  even  had  a  chance  at  mining. 

Perhaps  men  may  differ  with  the  writer  on  many 
points.  I  only  ask  that  our  arguments  may  be 
confined  to  facts  covering  this  subject,  not  general- 
ities, but  pointed  facts  placed  the  same  as  I  have 
placed  them.  Recently  I  asked  a  gentleman  en- 
gaged in  mining  the  question,  "Can  any  mine  grow 
to  success  by  the  payment  of  fifty  per  cent,  commis- 
sion?" He  evaded  by  replying,  "It  depends  upon 
the  mine."  The  writer  speaks  of  general  net  re- 
sults, not  some  accident,  which  is  possible  in  any 
line  of  industry,  and  which  has  so  often  been  wit- 
nessed in  mining.  The  other  day  an  investor,  study- 
ing the  way  to  prevent  explosions  in  automobiles, 
unconsciously  invented  the  noiseless  gun  that  may 
revolutionize  arms.  When  discussing  these  ques- 
tions, the  writer  means  sound  net  results,  something 
won  and  returned,  such  as  commercial  miners  win 
and  circulate,  and  in  which  we  desire  the  world  to 
share. 

Is  it  to  be  wondered  at  that  the  ownership  of  big 
mines  are  held  and  operated  by  miners,  when  the 
eastern  promoter  demands  half  for  his  efforts  in 
their  sale?  The  unsound  promoter  will  not  pay  for 
a  producing  mine,  he  wants  something  cheap.  Any 
prospect  that  shows  a  little  mineral  enables  him  to 
use  the  argument  that  he  has  a  "great  chance  of 
it  being  a  mine,"  but  a  producing  property  earning 


ROCKS  IN  THE  ROAD  TO  FORTUNE       331 

dividends  has  a  value,  and  while  the  value  of  the 
prospect  increases  as  its  ore  bodies  are  opened,  there 
is  nothing  positive  until  they  are  proven.  The 
author  plainly  asserts,  that  except  by  mining  un- 
derground, or  where  bonanza  ore  is  shown  at  the 
surface,  and  then  in  volumes,  that  capital  is  not  re- 
quired, you  cannot  make  mines  without  putting  a 
goodly  share  of  the  money  in  actual  underground 
work,  and  how  can  the  prospect  receive  its  just 
share,  if  the  broker  takes  fifty  per  cent?  Their  as- 
sertion that  it  costs  so  much  money  to  find  the  in- 
vestor, that  there  is  but  little  profit  to  themselves, 
is  answered  by  saying,  that  as  the  results  are  not 
profitable  to  anybody,  other  than  the  agent,  the 
system  that  calls  for  the  choloroforming  of  a  man 
to  deaden  his  natural  sense  of  reason  should  be 
abolished. 

I  believe  that  men  and  women  should  invest  in 
good  prospects,  but  at  least  seventy-five  per  cent,  of 
the  money  they  intrust  to  a  broker  should  be  act- 
ually used  in  mine  development  or  mechanical 
equipment,  that  aside  from  the  salary  of  the  sec- 
retary, there  should  be  no  official  compensations  un- 
til the  property  is  upon  a  paying  basis.  I  intend  to 
follow  this  plan,  but  cannot,  of  course,  force  my 
views  upon  others.  It  rests  with  the  investor  to 
dictate  the  policy  to  be  followed  in  the  expenditure 
of  his  money. 

I  want  to  see  the  day  passed  when  mining  is 
ridiculed,  where  a  man  now  walks  into  a  bank, 
Bpeaks  to  the  paying  teller,  who  stands  there  count- 


332   ROCKS  IN  THE  ROAD  TO  FORTUNE 

ing  and  stacking  gold,  the  results  of  honest  toil  by 
miners,  who,  when  he  says:  "I  would  like  an  inter- 
view with  the  President  about  a  little  mining  enter- 
prise," be  faced  with  the  retort,  "Oh,  h ,  he  has 

no  time  to  waste  on  bunco  mining  games!" 


JLil 


CHAPTER   XXVI. 
ORE  IX  SIGHT.     SHOOTS.     WORTHLESS  ORE. 

One  of  the  three  most  serious  evils  for  which  the 
inexperienced  miner  or  promoter  is  responsible,  and 
that,  faced  by  the  commercial  operator  in  his  search 
for  capital,  is  the  reckless  use  of  the  words  "ore 
in  sio'ht."  It  not  being  unusual  to  read  advertise- 
ments headed,  "Millions  of  Dollars  of  Ore  in  Sight," 
"Ten  Millions  Blocked  out,"  "All  is  Ore,  Fortunes 
are  to  be  Won  by  the  Mere  Taking."  To  the  in- 
experienced, these  assertions  convey  the  impres- 
sion that  the  invitation  to  capital  is  based  upon  a 
mine  or  prospect  condition,  which  by  development 
has  eliminated  risk,  for,  when  there  are  millions  in 
sight,  commercial  success  is  most  positive. 

The  writer  has,  within  the  past  hour,  returned 
from  examining  a  new  ore  shoot  opened  on  the  900 
foot  level  of  a  gold  mine,  the  lessees  having  ex- 
pressed a  desire  that  he  look  at  the  formation,  and 
advise  them  relative  to  its  profit  possibilities; 
while  underground,  discussing  the  peculiar  char- 
acter of  the  new"  shoot,  at  the  same  time  listening 
to  the  argument  as  to  its  value,  the  thought  for  this 
chapter  was  born.  In  fact,  this  book  has  been 
written  under  various  circumstances;  the  chapter 

333 


334  ROCKS  IN  THE  ROAD  TO  FORTUNE 

on  copper  was  dictated  at  Butte  City,  Montana, 
Christmas  Eve  of  the  past  year,  where  the  writer 
had  been  dispatched  to  consider  a  heavy  water 
flow  1,200  feet  deep.  One  of  the  chapters  on  Pros- 
pects was  outlined  in  a  cabin  at  10,200  feet  elevation, 
after  examining  a  thirty  foot  hole,  which  the  owner 
believed  was  a  bonanza. 

In  presenting  the  matter  relative  to  Ore  Shoots, 
the  writer  again  remarks  to  his  engineer  friends, 
that  "Kocks  in  the  Road"  has  not  been  written  for 
them — they  do  not  require  what  little  information 
I  can  impart — but  for  those  who  do  not  know  what 
an  ore  shoot  means,  yet  are  daily  invited  to  risk 
their  money  in  the  purchase  of  mining  shares  upon 
the  evidence  presented  to  them  by  the  promoter  re- 
lative to  the  values  or  ore  showing,  the  faithful  fol- 
lower of  mining,  who,  year  after  year,  believes  and 
risks.  He  is  the  man  that  I  hope  may  profit,  at 
least  a  little,  through  this  volume,  that  he  may 
continue  to  invest,  but  upon  sounder  lines,  where 
the  returns  will  meet  any  reasonable  expectations. 
As  ore  is  the  basis  of  all  mining  returns,  the  in- 
vestor should  be  told  a  little  of  what  the  more  ex- 
perienced believe  they  know,  giving  him  the  op- 
portunity to  pass  his  opinion  upon  the  evidence  sub- 
mitted. 

Ore  bodies  are  not,  as  many  believe,  continuous 
for  miles  down,  or  along  veins.  As  stated  in  the 
chapter  on  Prospects,  they  lie  in  all  sorts  of 
forms — some  large,  others  small;  some  come  to  the 
surface,  and  the  miner  reaps  profit  from  the  day 


ROCKS  IN  THE  ROAD   TO  FORTUNE        336 

of  their  opening;  others  lie  deep.  A  remarkable 
thing,  however,  is  the  fact  that  ninety  per  cent  of 
the  profit  earning  mines  of  the  world,  displayed  ore 
from  the  grass  roots,  a  great  majority  of  the  pay 
mines  being  enabled,  at  least,  through  their  visible 
ore  shoot,  to  pay  a  large  part  of  their  operating  ex- 
penses. 

Each  district  carries  an  individual  character,  re- 
lative to  ore  shoots,  especially  as  to  size.  In  some 
sections  the  bodies  are  larger  when  worked  out; 
others  are  sought  for  and  when  found  in  the  same 
vein,  they  too,  are  large;  while  in  districts  only  a 
few  miles  away,  the  shoots  will  be  smaller,  and  al- 
ways will  remain  short  or  narrow  during  their  op- 
erative life.  The  student  of  mining  has  often  won- 
dered at  the  peculiarity  of  ore  shoots.  It  is  a 
known  fact  that  while,  of  course,  there  are  excep- 
tions to  all  rules,  a  mine  will  strike  its  pace  of 
values  directly  upon  opening  of  its  first  shoot,  and 
through  its  commercial  life  the  average  values  will 
hold;  to  such  an  extent  is  this  the  truth,  that  the 
ore  value  of  almost  every  shipping  mine  can  be  com- 
puted to  within  a  few  cents  per  ton,  the  aggregate 
tonage  considered.  In  a  great  many  ore  bodies  of 
medium  grade  there  are  rich,  though  limited  lenses, 
intermingled  with  the  lower  grade  ores;  but  the 
general  average  is  nearly  always  the  same  month 
in  and  month  out,  the  various  enrichments  sweet- 
ening up  the  totals,  that  is  to  say,  the  surface  en- 
richment will  show  an  average  of  perhaps  |25  a 
ton,  yet,  figuring  a  thousand  tons  it  will  average 


336    ROCKS  IN  THE  ROAD   TO  FORTUNE 

down  to  as  low  as  |10  a  ton;  in  fact  some  of  our 
richest  mines  will  not  average  twelve  dollars,  and 
the  Homestake  will  carry  about  three  dollars. 
When  the  underground  enrichments,  that  is,  the 
shoot  that  follows  the  surface,  are  encountered,  it 
may  be  higher  grade — it  may  be  just  the  same 
grade  as  the  surface,  or  it  may  be  poorer,  but  gen- 
erally the  value  of  a  mine  and  the  product  of  its  ore 
can,  in  a  measure,  be  estimated  by  the  values  found 
in  the  first  three  hundred  feet.  Commercial  ore 
means  the  average  ore,  which  can  be  shipped  in 
three  classes;  first,  second,  and  third,  the  last  being 
commonly  called  concentrates  or  mill  dirt. 

Science,  in  the  last  ten  years,  has  made  rapid 
advancement,  making  possible  the  extraction  of 
profit  from  very  low  grade  ores.  We  owe  much  to 
the  study  of  geology  and  metallurgy;  but  we  do 
not  know  it  all;  each  year  we  further  master  the 
secrets  of  nature.  We  were,  however,  children 
twenty  years  ago,  as  far  as  a  proper  knowledge  of 
mining  was  concerned,  thus  those  who  lost  then, 
were  simply  schooling  those  who  win  to-day.  We 
improve  by  applying  the  experience  in  one  district 
to  the  veins  in  another;  we  can  now  come  near 
forming  a  healthy  conclusion.  There  is,  however, 
no  man  living,  who  can  walk  over  the  surface  of 
the  ground,  or  even  underground,  and  positively 
know  what  will  be  the  future  production  of  an  ore 
shoot  that  is  not  thoroughly  opened,  therefore,  the 
assertions  made  relative  to  ore  in  sight,  that  is  not 
in  sight,  is  misleading. 


ROCKS  IN  THE  ROAD   TO  FORTUNE      337 

In  examining  a  mine,  the  engineers  are  allowed 
much  latitude  in  figuring  upon  the  ore.  Thus,  in 
measuring  the  mineral  in  sight,  he  can  with  reason 
assert  that  the  ore  will  continue  from  fifty  to  one 
hundred  feet  further  in  all  directions,  beyond  the 
actual  ore  faces,  and  place  his  estimates  accord- 
ingly. But  it  seems  so  ridiculous  for  men  to  make 
bold  assertions  in  public  advertisements  claiming 
that  they  have  millions  of  dollars  of  ore  in  sight, 
when  there  is  not  sufficient  work  done  on  their 
property  to  justify  the  claim  that  there  is  even 
|100,000  of  commercial  ore  exposed,  in  many  cases 
where  the  sun  still  casts  its  shadow  on  the  bottom 
of  the  shaft. 

The  way  engineers  compute  the  contents  of  ore 
shoots  is  by  blocking  out  the  ground,  that  they 
may  measure  the  ore  bodies,  on  at  least  three  sides. 
Some  engineers  make  a  practice  of  taking  samples 
every  five  feet;  others  ten  feet;  some  of  them  who 
are  more  conservative  insist  upon  a  quarter  of  a 
ton  from  every  twenty  feet  of  ore  exposed,  all  of 
which  is  mixed,  quartered  down  and  sent  to  the 
sampling  works  for  tests,  the  assay  proves  the 
value,  the  tonnage  the  amount.  Ore  in  sight 
naturally  means  something  that  you  can  see,  not 
that  which  the  imagination  may  cover.  You  can 
see  the  number  of  tons  on  a  small  platform,  or  in 
a  block  of  ground  developed  on  four  faces;  you  can 
measure  a  kiln  of  bricks,  or  a  tank  filled  with  oil, 
but  that  which  you  can  not  actually  see  is  not  in 
sight,  and  all  the  sensational  publicity  claiming  it 


338    ROCKS  IN  THE  ROAD  TO  FORTUNE 

will  not  make  it  so ;  it  rather  increases  the  suspicion 
that  the  assertions  of  the  miner  can  not  be  relied 
upon,  which,  however,  is  an  injustice  to  the  com- 
mercial operator  who  states  facts. 

The  skilful  miner  watches  the  daily  develop- 
ments, in  even  old  tried  out  mines,  with  as  much 
interest  as  he  would  new  ones,  there  being  always 
the  possibility  of  a  fault  cutting  off  the  ore,  a  con- 
dition that  would  lead  the  inexperienced  to  believe 
the  mineral  shoot  had  ended.  But  the  practical 
engineer  or  mine  foreman  studies  the  fault  plane, 
and  finds  his  pay  ore  down,  up,  or  to  the  side,  as 
the  case  may  be.  These  ore  faults  are  a  study  in 
themselves.  Last  year  the  author  examined  a  mine 
in  Montezuma  district  where  the  ore  had  been  com- 
pletely faulted  five  hundred  feet  below  the  surface 
by  a  direct  side  fault,  yet  in  a  few  feet  the  second 
fault  reversed  the  first  fault,  thus  pushing  the  ore 
body  back  into  place.  The  reader  will  understand 
that  even  after  the  ore  is  known  to  be  in  commer- 
cial bodies,  and  the  mine  in  healthy  activity,  the 
manager  in  charge  must  be  constantly  on  the  alert 
for  the  changes  in  formation.  Reason  will  explain 
the  folly  of  placing  inexperienced  men  in  charge  of 
mines. 

Ore  shoots  have  their  limits,  no  matter  how 
large;  if  worked  continuously,  there  comes  an  end 
to  that  ore.  To  use  an  expression  of  T.  A.  Ricard, 
considered  among  the  world's  soundest  mining 
authorities,  "even  Methuselah  died."  As  has  been 
stated  before  in  the  chapter  on  Prospects,  shoots 


J 


ROCKS  IN  THE  ROAD  TO  FORTUNE       339 

occur  in  all  forms,  long,  lean,  wide  and  narrow, 
some  rich,  some  poor,  and  until  opened  by  shaft, 
drift  and  uprises,  no  man  living  can  tell  their  value 
or  tonnage  capacity.  Thus  it  is  apparent,  that  bad 
form  is  followed,  born  of  ignorance  or  selfish  in- 
tent, when  a  prospect  hole,  with  a  few  hundred 
feet  of  work,  is  heralded  through  the  press  as  hav- 
ing millions  of  ore  actually  in  sight,  and  the  invest- 
ments of  the  people  solicited  upon  such  assertions. 

Often  truth  is  spoken  in  jest;  thus,  a  promoter, 
handling  a  poorly-developed  project,  was  showing 
a  friend  through  his  hole  in  the  ground;  the  visitor 
said,  "Charlie,  where  is  your  pay  streak?"  "In  New 
England,"  was  the  truthful  reply. 

Another  thing  to  be  considered  is  the  regularity 
of  the  shoot  after  it  is  found.  In  true  fissures  the 
ore  bodies  have  a  set  strike,  dipping  north,  south, 
east  or  west,  according  to  the  strike  of  the  vein. 
After  experience  in  a  mine,  the  operators  can  figure, 
reasonably  certain,  where  an  ore  shoot  will  strike 
a  level  lower  down;  but  in  each  district  the  metal 
contents  of  shoots  seem  to  change,  and  there  are 
different  conditions  to  consider.  On  Quartz  Hill, 
Colorado,  which  has  made  an  estimated  production 
of  one  hundred  and  twenty  millions  of  dollars  in 
gold,  the  vein  system  lies  like  a  network,  crossing 
and  recrossing;  some  have  a  north  dip,  some  a 
south,  generally  the  north  dippers  carry  the  values. 
Often  a  rich  ore  body  is  paralleled  by  a  poor  vein; 
the  writer  at  one  time  had  a  lease  upon  one  of  the 
veins  where  a  barren  lode  crossed  it  and  below  the 


340    ROCKS  IN  THE  ROAD  TO  FORTUNE 

junction  the  barren  one  had  the  values,  and  the  one 
that  was  richer  on  the  surface  continued  in  lean 
o;round. 

In  certain  mines  the  ore  lies  in  what  is  called 
surface  lenses,  believed  to  be  water  formed,  the 
formation  being  commonly  known  as  Andesite. 
Where  these  lenses  occur,  mining  is  more  difficult 
than  in  the  true  fissure;  they  break  off  suddenly; 
they  twist  and  curve  according  to  the  crevice  in 
which  the  ore  is  found.  There  is  no  continuous  line  of 
ore  shoots  such  as  exist  where  the  true  fissure  vein 
is  common,  and  especially  in  the  great  mines  carry- 
ing heavy  sulphide  ore,  which  generally  lies  in 
close  relationship  to  granite  and  porphyry.  The  sur- 
face lenses  in  water  formed  districts  show  enormous 
values,  and  they  are  commercial  to  the  full  extent 
of  their  contents,  some  of  the  deposits  containing 
millions  of  dollars;  but  it  is  harder  to  block  out 
ore  in  sight  in  such  ground  than  it  is  in  the  fissure, 
though  if  the  deposits  are  well  opened,  a  computa- 
tion is  possible.  Where  these  rich  surface  shoots 
are  found,  there  follows  sensationalism,  hysteria, 
foolish  promises  and  inevitable  nervous  prostration 
of  both  investor  and  the  district. 

The  ore  bodies  of  all  mines  lie  in  the  matrix  of 
the  vein;  that  is,  the  gangue,  or  they  may  lie  di- 
rectly on  the  walls,  though  the  logical  position  for 
the  body  of  ore  is  on  the  foot  wall.  Some  of  the 
richest  ore  shoots,  however,  have  been  found  on  the 
hanging  side.  To  the  layman,  in  looking  at  a  great 
fissure   vein   filled   with   crevice   matter,   it   would 


ROCKS  IN  THE  ROAD  TO  FORTUNE      341 

appear  that  mineral  at  one  time  was  evenly  dis- 
seminated through  the  mass,  because  in  the  leanest 
portion  of  the  gangue  matter  there  are  frequently 
found  heavy  traces  of  mineral,  often  small  pieces 
of  very  rich  ore,  and  to  use  a  common  expression, 
the  ore  shoot  itself  is  like  a  plum  in  the  pudding, 
the  bread  part  being  the  matrix,  the  plum  the  bo- 
nanza. The  reader  may  now  understand  that  it  is 
not  all  pay  ore,  by  the  order  of  things;  if  it  were 
all  pay  ore  there  would  be  but  little  value  to  metals. 
A  layman  might,  and  perhaps  with  reason,  claim 
that  these  ore  shoots  were  formed  by  contraction 
that  took  place  after  the  precious  metals  were  de- 
posited in  the  fissures,  and  that  the  values  were 
drawn  from  long  distances  and  formed  into  the  ore 
shoots,  similar  to  the  system  followed  by  a  car- 
buncle while  drawing  to  its  head;  the  material  from 
which  the  richer  ore  has  been  drawn  is  naturally 
poor  and  called  gangue,  although  it  will  assay  some- 
thing. Yet  there  are  men  who  promote  mines,  with 
no  knowledge  of  mining,  who  claim  that  because 
gangue  matter  carries  a  value  it  should  be  classed 
as  ore.  Thus  we  find  men  estimating  on  ore  bodies 
that,  while  they  do  show  mineral,  and  would  per- 
haps show  a  good  assay,  the  ground  itself  is  com- 
mercially valueless.  The  investor  must  not  be  mis- 
led by  the  statement  that  millions  of  ore  are  in  sight, 
for  the  reason  that  if  it  were  of  commercial  value, 
and  local  conditions  good,  the  property  would  not 
go  begging,  even  in  the  west,  where  we  need  money 
badly  to  open  new  ground,  and  are  able  to  pay  as 


342    ROCKS  IN  THE  ROAD   TO  FORTUNE 

high  as  twelve  per  cent,  for  its  use.  The  broker 
should  be  asked  as  to  the  amount  of  work  done,  and 
the  value  of  the  ore  blocked  out,  from  a  commercial 
standpoint.  The  investor  may  be  met  with  the 
"needed  mill"  argument,  but  remember  the  chapter 
on  "The  Folly  of  Mill  Construction,"  insist  on  a 
plain  answer,  is  the  ore  of  commercial  value? 

The  writer  knows  of  a  mountain  that  a  man  could 
honestly  say  contains  fifty  million  dollars  in  ore, 
but  it  is  not  worth  a  penny,  as  the  value  is  not 
sufficient  to  make  it  commercial.  The  unsound 
promoter  figures  upon  the  ore  possibilities  of  a  pros- 
pect by  the  assay  value.  If  he  finds  a  large  body 
of  ore  running  four  dollars  a  ton,  which,  unless  it 
is  free  milling  gold  ore,  is  practically  worthless,  he 
makes  the  estimates  upon  what  he  supposes  is  ore 
in  sight,  figuring  the  contour  of  the  mountain  as 
a  surface,  and  his  imagination  in  considering  de- 
velopment; it  is  these  imaginative  miners  that  the 
writer  terms  "unsound."  It  is  not  my  intention  to 
say  that  the  men  are  dishonest  when  I  use  the  word 
"unsound";  it  is  meant  that  they  are  inexperienced 
in  mining,  their  system  of  promotion  unsound, 
profitless  to  any  but  themselves;  as  to  dishonesty, 
some  promoters  are  naturally  so,  but  not  all;  some 
make  honest  mistakes,  but  we  would  prefer  that 
no  mistakes  be  made,  honest  or  otherwise. 

The  writer  is  interested  in  a  mine  that  has  two 
streaks  of  ore,  one  on  the  hanging  and  one  on  the 
foot  wall.  Upon  the  property  in  question,  there 
is  about  20,000  feet  of  open  work.    There  is  a  core 


ROCKS  IN   THE  ROAD  TO  FORTUNE      343 

of  ground  or  gangue  matter  lying  between  these 
two  ore  streaks  that  is  absolutely  worthless.  It  is 
a  detriment  to  commercial  mining.  It  would  nol 
pay  to  haul  out,  yet  all  through  this  core  there  is 
mineral  that  will  assay  on  the  average  about  |3 
a  ton.  Figuring  the  tonnage  that  is  in  sight,  it 
can  be  computed  that  there  is  |6,000,000  of  metaJ 
in  that  ground;  but  it  is  of  no  present  value,  per- 
haps may  never  be. 

In  combating  the  author's  request  for  a  plain 
statement  of  the  true  facts,  of  the  form  and  extent 
of  ore  shoots,  as  experience  has  show  them  to  be, 
one  promoter  took  the  ground  that  he  had  the  right 
to  believe  that  if  he  had  ore  on  the  surface  that  it 
would  go  down  thousands  of  feet.  The  writer  does 
not  agree  with  this  theory;  it  has  been  treated  be- 
fore under  the  "I  believe"  system.  If  mining  is 
to  be  continued  on  past  lines  of  promotion,  which 
the  writer  claims  brings  but  little  money  into  the 
actual  industry,  then  the  questions  I  am  referring 
to  should  not  be  discussed.  The  fact  that  ore  shoots 
do  not  continue  unbroken  to  great  depth  should 
not  be  told.  The  public  should  be  left  to  follow 
their  ideas,  as  formed  through  inexperience,  to  be- 
lieve all  that  men  tell  them.  But  this  would,  never- 
theless, not  change  the  facts.  The  truth  is,  that 
ore  bodies  are  not  regular  and  that  the  estimating 
of  ore  in  sight,  until  it  is  actually  in  sight,  is  not 
a  sound  system.  Consequently,  the  statement  is 
not  true,  and,  not  being  based  upon  facts,  should 
not  be  a  part  of  the  promotions  of  mines,  which  we 
desire  shall  be  operated  upon  a  basis  of  fact. 


344    ROCKS  IN  THE  ROAD  TO  FORTUNE 

If  the  business  of  miniii<:>-  is  not  actual  under- 
ground work,  the  return  of  net  profits  from  ore 
actually  won  from  the  earth;  but  if  the  mining  in- 
dustry is  only  to  give  a  certain  class  of  men  the 
right  not  to  mine  but  to  refer  to  what  the  real 
miner  does,  but  himself  do  nothing  towards  actual 
ore  extraction,  use  his  energies  and  ability  to  "word 
paint,"  to  excite  the  inexperienced  into  the  taking 
of  great  chances  that  generally  result  in  profit 
to  the  promoter,  and  seldom  any  returns  to  the  in- 
vestor or  credit  to  mining — the  right  to  stretch 
the  "belief  and  "I-was-informed"  theory  to  great 
length,  to  say  that  when  a  strike  of  ore  is  made 
there  is  not  a  reasonable  limit  to  the  body,  to  sink 
a  few  holes,  not  sufficient  to  admit  of  a  study  of 
the  ore,  and  then  estimate  "millions  in  sight" — if 
these  are  the  true  lines  to  be  followed  in  commer- 
cial mining,  the  writer's  conception  is  entirely 
wrong.  He  will,  I  trust,  be  excused  for  his  ignor- 
ance in  believing  that  mining  is  the  result  of  work, 
its  profit  the  result  of  ore  extracted  and  sold  at  a 
profit  above  the  total  cost  of  operation. 

The  commercial  miner  opens  one  shoot;  before 
that  is  exhausted  he  searches  for  another.  Thus  the 
great  mines  devote  at  least  one-third  of  their  ener- 
gies to  opening  new  ore.  When  these  shoots  are 
opened,  there  is  considerable  of  the  same  left  be- 
hind as  reserves — that  is  blocks  left  standing  for 
future  operations.  Some  large  dividend  paying 
mines  carry  millions  of  dollars  as  reserves,  the  ore 
bodies  beincr  to  a  mine  what  the  cash  reserve  is  to 


ROCKS  IN  THE  ROAD  TO  FORTUNE      345 

a  national  bank;  it  can  not  be  stolen.  The  late 
W.  S.  Stratton,  discoverer  of  the  Independence  at 
Cripple  Creek,  believed  in  this  natural  bank  theory. 
The  question  of  ore  reserves  should  be  considered 
when  some  propery  is  actually  milling,  showing  a 
gold  production  and  paying  dividends  on  the  basis 
of  that  product.  Some  mines  can  make  limited 
productions,  but  unless  there  is  a  proper  regard  for 
its  ore  reserves  the  soundness,  or  good  intent  of 
the  operators,  may  with  reason  be  questioned  if 
they  pay  premature  dividends.  The  writer  does  not 
desire  to  be  classed  as  a  reformer;  he  expresses  the 
personal  desire  that  mining  be  conducted  upon 
sound  lines,  the  same  as  those  followed  by  the  com- 
mercial operator  who  does  sustain  the  industry. 

Often  men's  ideas  run  to  the  tunnel  system  in 
their  search  for  ore,  that  is,  cross  cutting  a  vein 
at  a  depth  and  then  figuring  on  the  value  of  the  ore 
shown  in  the  cross  cut  and  averaging  it  with  the 
value  of  the  ore  as  exposed  at  the  surface,  assum- 
ing that  it  is  ore  all  the  way  up.  This  is  all  right 
if  the  ore  is  continuous,  but  wrong  if  it  is  not.  The 
writer  has  known  men  to  have  a  small  streak  of 
ore  in  their  discovery  shaft,  w^hich  they  may  work 
to  the  depth  of  perhaps  two  hundred  feet,  then 
deliberately  leave  the  ore  and  go  down  the  side  of 
a  mountain  and  run  in  a  long  tunnel  for  the  pur- 
pose of  striking  the  vein  at  right  angles.  The 
Mexicans  do  not  follow  a  system  of  leaving  good 
ore  in  one  place  to  hunt  for  it  in  another.  Why 
should  the  more  advanced  American  do  so?    These 


346    ROCKS  IN  THE  ROAD  TO  FORTUNE 

tunnel  propositions  are  of  great  benefit  to  stock- 
holders and  a  state  where  the  intention  is  to  cut 
a  system  of  veins  or  drain  or  to  act  as  a  common 
carrier  for  known  producers  along  the  strike  of  the 
tunnel,  but  individual  cross  cuts  should  not,  in  the 
writer's  opinion,  be  driven  until  the  ore  is  proved 
worthy. 

Early  in  my  life,  long  before  I  had  seen  a  mine, 
tunnels  to  me  were  a  study.  While  I  was  in  the 
Topographical  Department  under  the  Postmaster- 
General  at  Washington,  though  a  mere  boy,  I  read 
several  books  on  tunnel  mining,  being  attracted  to 
the  subject  through  an  acquaintanceship  with  the 
late  Theodore  Sutro,  who  came  to  Washington  ask- 
ing Government  aid  for  the  purpose  of  driving  the 
Sutro  tunnel  to  cross  cut  the  Comstocks.  I  have 
always  attributed  my  entrance  into  mining  to  Mr. 
Sutro.  Before  he  came  to  the  capital  the  height 
of  my  ambition  was  to  enter  political  life.  But 
after  listening  to  that  able  gentleman  in  his  public 
lectures  on  the  Comstock  and  its  great  wealth — 
although  the  "Big  Bonanza"  had  not  at  that  time 
been  struck — I  determined  upon  a  mining  career. 
In  a  study  of  the  history  of  cross  cut  tunnels  the 
world  over,  a  curious  fact  is  shown,  that  is,  only 
five  out  of  every  hundred  have  struck  an  ore  shoot 
at  the  intersection;  that  is  to  say,  a  large  body  of 
paying  ground;  the  tunnels  may  have  passed 
through  may  veins  that  were  big  producers  higher 
up,  and  which  have  continued  to  produce  after  the 
intersection.     But  with  the  rare  exceptions  noted, 


ROCKS  IN  THE  ROAD  TO  FORTUNE      347 

cross  cut  tunnels  fail  to  strike  ore  bodies,  but  then, 
no  great  deposits  of  ore  were  ever  opened  by  the 
cuttings  of  railroad  grades  through  mining  districts. 
This  is  no  argument  against  cross  cut  tunnels;  it 
is  citing  the  fact  which  a  miner  understands,  and  the 
results  are  not  discouraging,  because,  as  is  well 
known,  about  one-half  of  the  contents  of  every  vein 
show  barren  gangue.  And  a  tunnel  only  cuts  a 
vein  about  ten  feet  high  by  twelve  feet  wide,  and 
often  even  a  smaller  face,  which  is  an  infinitesimal 
amount  of  a  crevice  to  puncture,  considering  the 
vast  amount  of  crevice  matter  contained  in  a  vein, 
an  ore  body  may  be  within  ten  feet  of  the  sides  of 
the  tunnel,  and  their  existence  never  known  until 
opened.  A  glance  at  the  map  of  the  ore  shoot  in 
the  Comstocks  will  show  shafts  sunk  to  great  depth 
just  to  one  side  of  "Bonanzas." 

Such  great  tunnels  as  the  Newhouse  of  Idaho 
Springs,  the  Yak  of  Leadville,  the  Sutro  of  Ne- 
vada, the  El  Paso  tunnel  of  Cripple  Creek,  not  to 
mention  Mexican  and  South  American  tunnels,  in 
which  we  have  no  personal  interest,  are  of  much 
benefit  to  mining  communities,  and  largely  aid  in 
increasing  the  production,  through  giving  relief 
from  water,  better  ventilation,  cheaper  transporta- 
tion. However,  tunnel  propositions  projected  by  in- 
dividuals without  ample  capital  are  slow,  long 
drawn  out  affairs.  They  are  especially  open  to 
question,  where  a  man  may  have  a  little  bunch  of 
ore  on  the  surface,  then  run  a  tunnel  three  or  four 
thousand  feet  long  to  tap  the  vein  a  thousand  feet 


348         ROCKS  IN  THE  ROAD  TO  FORTUNE 

deep  before  he  is  positive,  by  a  shaft  development, 
that  the  ore  extends  down,  each  added  failure  in 
the  mining  industry  only  brings  it  further  into 
disrepute;  but  if  the  owner  invests  his  own  money, 
no  one  can  complain.  It  has  been  stated  jocularly 
that  perhaps  the  promoter  who  drives  these  long 
cross  cut  tunnels,  before  he  really  knows  that  his 
ore  goes  down,  desires  a  long  time  to  try  out  his 
arguments  and  thus  sell  securities  before  the  ex- 
istence or  non-existence  of  the  ore  refutes  or  con- 
firms the  claim.  Where  the  country  is  propitious 
and  great  depth  can  be  gained,  tunnel  mining  is  the 
ideal  method.  Thus  we  find  the  San  Juan  country 
of  Colorado  especially  adapted  for  this  form  of  op- 
eration; Clear  Creek,  Summit,  and  Gilpin  County 
are  also  favored,  and  it  is  to  be  regretted  that  the 
topography  of  the  famous  Cripple  Creek  district 
does  not  admit  of  a  deeper  tunnel  system,  although 
it  is  undisputed  that  the  projected  Roosevelt  tunnel 
that  is  to  go  under  the  El  Paso  tunnel,  will  give 
additional  relief  and  make  several  hundreds  of  mil- 
lions of  dollars  of  ore  available. 

That  the  discovery  of  ore  shoots  is  liable  in  any 
mine,  is  shown  by  the  fact  that  poor  men  have  been 
known  to  strike  ore  at  the  surface  and  to  continue 
in  pay  ground  throughout  the  entire  operative  life; 
but  for  a  man  to  have  a  wide  ore  shoot  and  of  great 
length  the  vein  itself  must  be  large.  It  is  not 
reasonable  to  expect  a  breast  of  ten  feet  of  ore  in 
a  vein  that  is  only  three  fet  wide.  A  study  of  ore 
shoots  enables  the  commercial  miner  of  to-day  to 


ROCKS  IN   THE  ROAD  TO  FORTUNE      349 

win  fortune  quicker  and  with  greater  certainty 
than  was  possible  twenty-five  years  ago,  for  the 
reason  that  we  have  the  results  of  the  famous  Corn- 
stock  before  us,  a  better  understanding  of  the  old 
mines  of  Mexico  and  Peru,  all  of  which  have  been 
examined  by  our  engineers  and  their  opinion  pub- 
lished. Every  carpenter  carries  his  kit  of  tools;  so 
does  the  advanced  commercial  miner  carry  his, 
perhaps  the  cheapest  set  in  the  world,  a  library  of 
mining  books  written  by  such  men  as  Weed,  Ricard, 
Richards,  Peters,  and  others.  Twenty-five  dollars 
so  invested  gives  the  prospector  a  kit  of  tools  that 
may  make  him  a  million  in  a  night.  Even  lessees 
in  the  large  mines  invest  sixteen  dollars  in  a  kit, 
subscribing  to  the  Engineering  and  Mining  Journal, 
the  Mining  and  Scientific  Press,  Mining  Science,  and 
the  Mining  World,  these  four  publications  keeping 
them  in  touch  each  week  with  the  world's  discov- 
eries and  deductions  as  made  by  engineers  through- 
out the  mining  world.  With  knowledge  so  cheap, 
is  there  any  excuse  for  ignorance?  Thus  mining 
and  the  study  of  ore  shoots  is  to-day  a  science.  The 
miner  of  America  reads  of  the  way  ore  shoots  dip 
or  swell  in  African,  Siberian  and  South  American 
mines,  and  he  applies  the  results  of  the  study  to 
our  own  districts. 

In  closing  the  side  that  has  reference  to  pro- 
motions by  inexperienced  men,  sensational  prom- 
ises made  to  excite  investment,  ambiguous  asser- 
tions that  mean  nothing,  the  old  Methuselah  system 
of  raising  the  prices  of  stock  every  few  weeks  for 


350    ROCKS  IN  THE  ROAD  TO  FORTUNE 

the  purpose  of  hastening  the  determination  of  the 
investor  to  buy  without  any  material  increase  in 
values  at  the  mine,  the  payment  of  unsound  divi- 
dends, enormous  capitalizations  upon  non-commer- 
cial prospects.  Before  turning  to  sounder  things,  the 
real  industry  that  is  responsible  for  the  glorious 
record  made  by  American  mines,  the  writer  reiter- 
ates that  which  he  has  said  before,  that  the  desire 
of  all  commercial  operators  is  that  the  investor 
may  be  taught  that  there  is  the  right  way  and  the 
wrong  way  to  mine,  the  sound,  the  sensational,  the 
productive,  the  non-productive. 

It  is  desired  that  new  capital  may  find  its  way 
into  mining  and  reap  its  share  of  the  enormous 
profits  that  are  annually  won  by  legitimate  efforts 
at  ore  extraction:  the  subject  matter  herein  ex- 
pressed are  the  author's  views;  he  has  made  no  at- 
tempt to  describe  in  scientific  terms  the  reasons,  the 
theories,  and  the  belief  of  geologists;  there  are 
abler  men  engaged  in  writing  such  books.  Perhaps 
he  may  have  been  over-zealous;  but  those  who  do 
not  see  the  result  of  misrepresentation,  cannot  ap- 
preciate the  disappointment  and  sorrow  that  fol- 
lows the  investment  of  a  few  dollars  by  people  who 
can  not  afford  to  lose;  I  am  further  actuated  by  a 
knowledge  that  the  mining  industry  itself  does  not 
profit.  Therefore  I  am  taking  nothing  away  from 
the  industry,  for  it  receives  nothing  through  un- 
sound promotions,  but  rather  I  hope  that  the  public 
will  demand  that  the  money  it  intends  for  mines 
shall  be  actually  expended  in  underground  work. 


ROCKS  IN  THE  ROAD  TO  FORTUNE      351 

The  investor  must  be  the  judge  and  he  can  not 
well  judge,  unless  he  has  some  evidence  marked  in 
plain  old-fashioned  language  from  which  to  draw 
his  deduction.  There  is  good  and  bad  in  every  line 
of  life,  it  is  with  pleasure,  however,  that  we  look 
over  the  mining  industry  in  all  of  its  ramifications 
and  realize  how  few  there  are  engaged  in  this 
magnificent  avenue  of  natural  wealth  that  are  un- 
sound, or  to  use  a  more  generous  word,  inex- 
perienced. The  writer  has  stated  that  if  one  hun- 
dred generals  of  publicity  promotions  were  elimin- 
ated, or  rather  their  energies  kept  in  the  industry, 
but  upon  commercial  lines,  if  they  were  taught  the 
truth  themselves,  there  would  be  many  successes 
that  otherwise  will,  perhaps,  be  failures.  Enlighten- 
ment will  enable  the  investor  to  ask  those  vital 
questions  which  his  inexperience  does  not  permit 
him  to  ask;  and  thus  in  the  end  the  evils,  of  which 
the  commercial  miner  complains,  may  be  elimin- 
ated from  the  business  of  promotion. 

It  is  very  little  that  the  commercial  miner  asks; 
that  enterprises  based  upon  prospects  should  not 
be  termed  mines;  that  all  promotions  should  be 
presented  upon  plain  statement  of  facts;  that 
dividends  should  not  be  paid  until  the  mine  is  in 
position  to  sustain  them  for  a  number  of  years; 
that  the  money  intended  for  underground  work 
should  be  so  applied;  that  the  great  debt  saddled 
upon  prospects  created  by  excessive  commissions 
should,  in  the  future,  be  reduced  to  reasonable 
amounts.    All  other  industries  promoted  upon  lines. 


362   ROCKS  IN  THE  ROAD  TO  FORTUNE 

where  capital  is  publicly  solicited,  embark  upon  the 
sea  of  commercial  life  burdened  with  but  a  small 
debt,  as  compared  to  the  forty  or  fifty  per  cent  that 
mining  carries  through  certain  systems  of  promo- 
tion. Why  should  mining  be  the  exception?  All 
industrial  enterprises  use  their  capital  in  improv- 
ing their  plants;  mining  should  enjoy  the  same 
privileges,  for  then  the  return  will  be  greater  to 
the  investor,  far  larger  than  he  can  obtain  from  any 
other  line  of  industrial  activity. 


CHAPTER  XVII. 
HOW  THE  GREAT  BONANZA  WAS  FOUND. 

Turning  to  the  commercial  side  of  mining,  with 
the  intent  of  explaining  to  the  investor  the  en- 
ormous profit  possibilities  of  the  industry,  the  vast 
fortunes  won  by  men  of  limited  means,  millionaires 
created  in  a  night,  the  wonderful  strides  of  mining 
science,  the  better  understanding  of  ore  shoots  and 
metallurgy,  the  writer  will  make  a  feeble  attempt 
at  describing  how  the  great  bonanza  of  the  Corn- 
stocks  was  discovered,  that  Aladdin-like  cave  that 
enriched  the  world  in  a  few  years,  one  hundred  and 
fourteen  millions  of  dollars,  establishing  precedents 
that  miners  of  to-day  follow  in  their  search  for 
great  ore  bodies. 

In  1881,  the  author  was  visiting  the  City  of  Wash- 
ington, and  was,  for  a  month,  private  secretary  to 
United  States  Senator  Wilkinson  Call,  of  Florida, 
and  Hon.  Benjamin  F.  Jonas,  of  Louisiana,  the 
position  giving  him  the  courtesy  of  the  floor  of  the 
United  States  Senate.  It  was  there  that  he  made 
the  acquaintance  of  Senator  James  G.  Fair,  then 
wearing  the  fresh  laurels  of  the  victories  of  the 
Comstock,  and  John  P.  Jones,  to  whom  is  accredited 
the  first  discovery  of  the  great  ore  shoots  on  that 

353 


364    ROCKS  IN  THE  ROAD   TO  FORTUNE 

famous  lode,  notably  the  Crown  Point  Bonanza. 
These  two  gentlemen,  perhaps,  have  often  con- 
sidered the  writer  a  pest,  because  lounging  in  the 
cloak  rooms,  between  dry  debates,  at  each  oppor- 
tunity, recognizing  the  value  of  such  experience 
with  a  desire  to  learn  about  the  underground  work 
of  the  greatest  of  American  mines,  I  discussed  with 
them  the  conditions  of  the  Comstock  Lode,  how  the 
lenses  lay,  what  seams  they  followed  in  tracing  one 
ore  body  to  another,  the  character  and  indications 
of  the  water  pockets  that  they  encountered,  which 
at  times  almost  threatened  to  inundate  the  entire 
works.  What  I  have  to  say  relative  to  the  dis- 
covery of  the  Big  Bonanza  is  largely  the  informa- 
tion that  was  directly  imparted  to  me  by  both 
Senators  Fair  and  Jones.  Since  that  time,  the 
writer  has  become  closer  associated  with  John  P. 
Jones,  the  recognized  authority  on  silver  mining  in 
the  west,  and  William  M.  Stewart,  the  recognized 
legal  authority  on  mine  litigation,  from  whom  the 
writer  has  received  much  valuable  information  re- 
lative to  mining  law.  There  are  few  men,  whose 
personality  was  more  pleasing  than  was  that  of  the 
late  James  G.  Fair.  He  was  a  chunky-built  man, 
weighing  about  185  pounds,  and  wore  a  short  crop- 
ped beard.  His  was  as  handsome  and  manly  a  face 
as  I  have  ever  had  the  pleasure  to  gaze  upon;  he 
was  a  man  all  through,  generous  to  a  fault,  would 
go  to  any  trouble  to  help  a  friend.  The  author  at 
that  time  was  interested  in  the  White  Hall  gold 
mines  of  Virginia,  and  Senator  Fair,  to  aid  him  in 


ROCKS  IN  THE  ROAD  TO  FORTUNE      356 

floating  the  proposition,  paid  the  expenses  of  a 
special  train  and  accompanied  the  visitors  to  that 
property,  and  it  was  there  that  the  writer  received 
his  first  instructions  in  square-set  timbering  from, 
perhaps,  the  greatest  living  underground  miner. 

It  is  asserted  that  when  mines  are  rich,  honestly 
operated,  and  considered  as  commercial  proposi- 
tions, there  is  no  line  of  industry  that  can  equal  the 
profits.  It  is  the  one  fascinating  avenue  in  which 
men  of  limited  means  may  embark  with  a  feeling  of 
reasonable  certainty  of  returns,  when  the  intention 
is  to  mine  and  not  to  speculate,  without  treating 
the  veins  or  deposits  in  a  generous  manner,  as  far 
as  placing  a  majority  of  the  investment  in  actual 
underground  work  is  concerned.  It  was  labor  and 
capital  that  won  the  Big  Bonanza,  of  which  I  now 
write. 

That  the  reader  may  understand  a  little  about 
conditions  leading  to  this  remarkable  achievement 
— the  opening  of  the  Big  Bonanza — I  will  say  that 
the  Comstock  Lode  is  a  zone  of  about  five  miles 
long;  it  starts  near  the  Carson  river,  one  branch 
running  to  what  is  known  as  Silver  City,  the  two 
branches  uniting  and  the  great  lode  then  extending 
northward,  past  the  base  of  Mt.  Davidson,  again 
splitting  into  two  arms  about  two  miles  from  Vir- 
ginia City. 

The  first  bonanzas  of  the  Comstock  were  found 
near  the  southwest  end  and  were  worked  up  as  far 
as  the  California,  the  first  ore  body  being  opened 
by  John  P.  Jones  in  what  is  known  as  the  Crown 


356    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Point.  From  the  California  north — in  the  early 
days — there  was  an  impression  that  the  zone  was 
barren;  shafts  had  been  sunk,  but  no  pay  ore  had 
been  encountered,  and  for  a  long  time  it  was  con- 
sidered that  the  Bonanzas  were  confined  to  the 
south  end. 

The  author  met  many  men  at  Dayton,  Nevada, 
who  followed  the  fortunes  of  the  Comstocks  from 
1868  down  to  the  present  day,  and  from  them  much 
valuable  data  has  been  obtained  and  from  them  he 
was  informed  that  John  P.  Jones  was  the  first  to 
really  open  bonanza  ore  on  the  Comstocks,  but  the 
rise  of  Mackay  from  a  mine  laborer  is  the  interest- 
ing feature  of  the  history. 

The  discovery  of  the  Crown  Point's  bonanza  in 
1870  had,  however,  increased  the  value  of  all  the 
mines  on  the  Comstock  by  about  |45,000,000.  A 
still  greater  bonanza — the  one  by  which  the  fame 
of  Nevada  was  spread  abroad  in  every  land  and 
every  tongue — was  near  discovery  even  while  Sen- 
ator Jones  was  running  the  fateful  drift  that  raised 
Crown  Point  stock  within  a  year  from  $2  a  share  to 
11,825  and  lifted  the  stock  of  Belcher,  the  adjoining 
mine,  from  $1.50  a  share  to  |1,525. 

There  were  four  men  in  what  is  known  as  the 
Big  Bonanza  firm — Mackay,  Flood,  Fair  and 
O'Brien.  Mackay  and  Fair  were  the  miners.  This 
syndicate  had  been  interested  in  a  mine  known  as 
the  Bullion,  but  had  not  made  a  success  of  the 
enterprise,  as  the  ore  shoots  were  not  of  sufficient 
length  and  richness.     Thev  had  therefore  resolved 


ROCKS  IN  THE  ROAD   TO  FORTUNE     357 

to  risk  their  fortunes  upon  a  great  undertaking, 
that  was,  to  open  up  the  northern  part  of  the  Corn- 
stock  vein  in  that  unexplored  territory  before  men- 
tioned which  all  the  miners  considered  barren.  The 
ground  was  owned  by  others,  consequently  it  was  a 
delicate  piece  of  financing  to  obtain  control  of  the 
territory  without  exciting  comment.  They  finally, 
however,  secured  control  of  the  ground  for  about 
$40,000,  that  is  nearly  fifteen  hundred  feet  in 
length,  or  about  the  size  of  an  ordinary  mining 
claim.  They  did,  however,  obtain  more  shares  later, 
but  the  ultimate  cost  was  fully  |100,000.  They 
tjien  had  control  of  what  is  known  as  the  California 
and  Consolidated  Virginia  mines,  and  they  took 
possession  in  1872. 

The  world-famous  property  known  as  the  Con- 
solidated Virginia  was  only  about  710  feet  in  length 
and  showed  absolutely  no  pay  ore  at  the  surface, 
the  first  ore  being  in  the  California  to  the  south. 
In  1872  they  spent  in  all  |212,000  in  development  of 
the  Consolitated  Virginia.  They  afterwards,  at  the 
depth  of  1110  feet  below  the  surface,  started  their 
drift,  passing  through  other  mines  to  reach  their 
own  ground.  Fair  had  charge  of  this  work.  It  is 
still  stated  all  over  the  Comstocks  that  he  had  the 
"finest  nose"  for  ore  of  any  man  then  in  Nevada, 
and  he  clung  to  that  drift  with  the  pugnacity  of  a 
bulldog.  He  finally  struck  a  change  in  the  ground 
and  found  a  narrow  seam  of  rich  ore.  The  writer, 
in  memory,  can  now  see  Senator  Fair  raising  a 
paper  cutter  as  he  explained  that   streak  of  ore, 


358    ROCKS  IN  THE  ROAD  TO  FORTUNE 

while  sitting  at  his  desk  in  the  Senate.  He  said: 
"The  streak  of  sulphide  was  scarcely  thicker  than 
the  blade  of  that  paper  cutter."  This  seam,  which 
nine  out  of  ten  miners  would  not  have  noticed,  was 
followed  inch  by  inch;  so  fine  did  it  at  times  become 
that  the  rock  had  to  be  washed  to  keep  the  drift 
upon  the  thin  film  of  clay  and  ore;  often  it  appeared 
lost  and  was  again  picked  up  and  followed  through 
the  labyrinths  of  hundreds  of  feet.  Mr.  Fair  was 
taken  ill  at  a  very  important  period  of  this  develop- 
ment work,  he  was  obliged  to  remain  above  ground 
for  some  time.  On  his  return  he  found  that  the  less 
experienced  miners  had  lost  the  film  of  ore  and  were 
driving  into  dead  barren  rock.  He  went  back  in 
the  drift,  made  his  crosscuts,  and  again  found  the 
thin  thread  of  ore.  This  drift  at  that  time  was  only 
about  100  feet  from  the  Consolidated  Virginia's 
own  ground,  and  it  looked  very  blue  for  those  men; 
for  notwithstanding  they  had  spent  such  enormous 
sums,  with  no  indication  of  ore,  other  than  the 
thread,  and  they  were  within  one  hundred  feet  of 
their  own  ground,  and  if  they  did  not  strike  the  ore 
the  loss  would  have  been  total;  but  Mr.  Fair  per- 
sisted, and  the  other  shareholders  that  they  had 
not  succeeded  in  buying  out,  sustained  them;  the 
work  was  driven  forward.  The  values  of  the  shares, 
however,  depreciated  day  after  day,  and  it  was  pre- 
dicted that  Mackay  and  Fair  would  again  be  back 
working  for  wages  in  the  Comstock  mines. 

The  brainier  men  of  the  Comstock,  such  men  aa 
Jones,  Sharon  and  Stewart,  were  not  so  confident 


^m'^: 


.~-:y^^4 


Country  rock        .edge  matter  r    ^  . 

Cut  showing  that  ore  shoots  are  not  continuous,  and  that  no  special  strike  is 

maintained.    No   3  explains  how  the  shaft  passes  through  the  first  ore   shoot, 

and  how,  by  drifting  the  second  ore  shoot  is  found. 


m 


ROCKS  IN  THE  ROAD  TO  FORTUNE     359 

that  the  bonanza  firm  would  not  find  ore.  The 
metallic  film  was  followed  still  further.  Finally, 
like  the  bursting  into  bloom  of  a  flower,  the  drift 
entered  a  vein  six  feet  wide  and  averaged  clear 
across  its  face  |65  per  ton.  On  each  side  of  this 
vein  were  two  parallel  ore  bodies  but  not  of  large 
size.  In  thirty  days  after  the  striking  of  the  ore 
body  the  vein  was  twelve  feet  wide. 

A  shaft  was  in  the  meantime  being  sunk  and  by 
the  time  that  they  had  reached  the  ore  body  thus 
opened  by  the  drift,  there  was  a  large  amount  of 
bonanza  ore  in  sight.  A  drift  was  run  southeast 
from  the  bottom  of  the  shaft  extending  about  270 
feet.  This  drift  cut  the  real  "Big  Bonanza,"  and 
they  at  once  were  aware  of  the  enormous  deposit  of 
ore,  the  hidden  treasury  vault,  the  combination  of 
which  had  been  worked  out,  the  doors  were  thrown 
wide  open,  and  its  wealth  revealed  to  the  world. 

In  thirty  days  they  had  hewn  out  a  great  under- 
ground cavern  and  they  supported  it  with  square 
sets  of  timber,  although  they  extended  the  drift  160 
feet  further  through  the  vein,  every  inch  of  it  was 
still  in  this  rich  ore,  no  matter  where  they  assayed 
it,  sides,  bottoms,  roofs,  faces,  it  ranged  in  value 
from  $93  to  as  high  as  |625  per  ton.  It  is  aptly 
stated  that  the  top  of  nature's  greatest  deposit  of 
mineral  wealth  had  been  pried  off — greatest  up  to 
that  time,  but  the  future  may  show  even  greater. 

In  the  month  following  such  work  as  had  never 
been  seen  on  the  Comstock  before  or  known  in  his- 
tory was  under  way,  but  it  was  only  the  beginning  of 


360    ROCKS  IN  THE  ROAD   TO  FORTUNE 

still  greater  exploits  by  disciplined  labor.  The  ef- 
forts of  the  brawny  men,  stripped  to  the  waist,  toil- 
ing in  the  depths,  were  evidently  almost  like  the  way 
the  sailors  toil  between  decks  of  fighting  ships.  The 
great  shaft  was  being  sunk  at  the  rate  of  three  feet 
a  day  and  at  the  1200  foot  level  a  drift  showed  that 
the  ore  body  continued  to  grow  wider,  but  they  had 
not  yet  commenced  to  take  out  the  ore. 

The  work  of  exploration  went  on  and  the  im- 
mensity of  the  ore  body  was  more  and  more  plainly 
revealed  through  the  winter  of  1873  and  the  spring 
and  summer  of  1874.  The  bonanza  was  cut  across 
at  a  depth  of  1,400  feet,  and  also  at  the  1,500-foot 
level,  in  1874.  Here  the  ore  was  of  such  unparal- 
leled richness  that  for  the  first  time  the  outside 
world  of  mining  men  and  speculators  began  to  talk 
about  it. 

There  were  "short  turns"  and  speculations  num- 
berless in  the  stock  during  the  year  and  a  half  that 
followed  the  ore  find  of  March,  1873,  but,  all  in  all, 
the  inability  of  the  stock  speculators,  both  leaders 
and  masses,  to  comprehend  the  greatness  of  the 
discovery  seems  inexplicable.  As  soon  as  they 
became  convinced  that  the  bonanza  was  really 
unprecedented  in  magnitude,  they  hastened  to  buy 
heavily;  but  by  this  time  the  general  public  had 
been  roused  to  a  sudden  fever  of  excitement  and 
the  value  of  the  famous  mines  rose  every  hour 
on  the  stock  boards.  In  December,  1874,  Con- 
solidated Virginia  reached  |610  per  share,  rising 
again  in  January  to  $700,  which  made  the  selling 


ROCKS  IN  THE  ROAD  TO  FORTUNE     361 

value  of  the  mine  |75,600,000.  California  stock 
went  even  higher,  for  it  was  said  that  the  bonanza 
extended  over  from  Consolidated  Virginia  in  such 
a  wav  as  to  give  the  California  mine  the  larger  part. 
California  shares,  worth  |37  in  September,  rose  to 
f  780  in  January,  1875,  making  the  valuation  of  that 
mine  |84,240,000.  The  1,310  feet  on  the  lode  which 
had  been  valued  five  years  before  at  forty  or  fifty 
thousand  dollars  are  now  worth  in  the  market,  ac- 
cording to  stock  sales,  about  $160,000,000. 

Extending  their  work  far  north  into  the  Cali- 
fornia; they  made  winzes  from  level  to  level  to 
use  in  removing  ore.  They  proved  that  the  width  of 
the  mass  was  from  one  hundred  and  fifty  to  three 
hundred  and  twenty  feet,  and  that  the  richness  con- 
tinued without  abatement  through  drift  after  drift, 
level  below  level.  The  ore  output  increased,  and  a 
dividend  of  three  dollars  a  share  declared  in  May, 
1874,  had  been  followed  by  others.  "The  scene  with- 
in this  imperial  treasure-house  was  a  stirring  sight. 
Cribs  of  timber  were  piled  in  successive  stages  from 
basement  to  dome,  four  hundred  feet  above,  and 
everywhere  men  were  at  work  in  changing  shifts, 
descending  and  ascending  in  the  crowded  cages, 
clamoring  up  to  their  assigned  stopes  with  swinging 
lanterns  or  flickering  candles,  picking  and  drilling 
the  crumbling  ore,  or  pushing  lines  of  loaded  cars 
to  the  stations  on  the  shaft.  Flashes  of  exploding 
powder  were  blazing  from  the  rent  faces  of  the 
stopes;  blasts  of  gas  and  smoke  filled  the  connecting 


362    ROCKS  IN  THE  ROAD  TO  FORTUNE 

drifts;  muffled  roars  echoed  along  the  dark  gal- 
leries; and  at  all  hours  a  hail  of  rock  fragments 
might  be  heard  rattling  on  the  floor  of  a  level,  and 
massive  lumps  of  ore  falling  heavily  on  the  slanting 
pile  at  the  foot  of  the  breast." 

When  the  flfteen-hundred-foot  level  was  reached 
and  the  ore  cut  into  was  richer  than  ever  before 
known  on  the  Comstock,  the  "Territorial  Enter- 
prise," of  Virginia  City,  came  out  with  double- 
leaded  columns,  under  the  heading  of  "Heart  of  the 
Comstock."  Of  the  lowest  crosscut  the  "Enterprise" 
said:  "It  has  been  bored  into  the  bonanza,  through 
a  mass  of  chloride  and  sulphuret  ores  which  excites 
the  imagination  of  all  beholders.  It  is  now  in  two 
hundred  and  five  feet,  ninety-five  of  which  is  in  the 
extraordinary  rich  ore  of  which  so  much  has  been 
heard.  In  this  crosscut  was  encountered,  a  day  or 
two  since,  the  stephanite,  a  species  of  ore  that  is 
almost  pure  silver.  At  the  distance  of  one  hundred 
and  eighty  feet  from  the  crosscut  a  chamber  of 
about  ten  feet  each  way  has  been  excavated.  Its 
walls  on  every  side  are  a  mass  of  the  finest  chloride 
ore,  filled  with  streaks  and  bunches  of  the  richest 
black  sulphurets.  It  looks  as  if  the  whole  mass 
grew  richer  with  every  foot  of  the  advance."  Ores 
of  this  kind  assay  up  into  the  thousands  of  dollars, 
but  it  seemed  impossible  that  such  large  masses  of 
silver  should  have  been  deposited,  even  in  the  Com- 
stock, so  the  "Enterprise"  reporter  brought  his  esti- 
mates down  to  one  hundred  dollars  a  ton,  reduced 


ROCKS  IN  THE  ROAD   TO  FORTUNE     363 

the  size  of  the  deposit,  and  figured  out  |116,748,000 
in  sight. 

It  is  no  secret  on  the  Comstock  that  this  reporter 
was  William  Wright,  widely  known  on  the  Pacific 
coast  as  "Dan  De  Quille,"  one  of  the  best  living 
writers  on  mining  subjects. 

"The  San  Francisco  newspapers,"  said  he,  when 
interviewed,  "had  been  saying  for  a  long  time  that 
there  was  no  ore  in  Consolidated  Virginia;  that  peo- 
ple were  getting  up  a  stock  deal.  Some  of  us  hap- 
pened to  know,  however,  that  Fair  had  been  quietly 
taking  ore  out  of  the  mine  through  the  old  Bonner 
shaft.  One  day  he  drove  up  to  the  'Enterprise'  of- 
fice and  came  in. 

"  'Those  city  papers  have  been  abusing  us  long 
enough,'  he  remarked;  'I  won't  stand  it!  Where's 
Dan?  I  want  him  to  go  down  to  the  mine.  I'll 
show  him  what  we're  doing.' 

"This  was  before  anyone  had  definite  knowledge 
of  the  strike.  It  was  before  the  'Enterprise'  had 
printed  anything  important,  you  understand — only 
rumors  or  street  talk.  When  I  had  been  in  the  mine 
before  I  could  not  get  into  those  drifts.  Fair  spoke 
pretty  loud,  as  if  he  only  wanted  to  shut  up  the  city 
papers,  but  probably  he  had  all  the  stock  he  wanted 


Dan  De  Quille  wrote  an  admirable  work  entitled  "The  Big 
Bonanza."  If  the  reader  is  interested  in  the  history  of  the  "Com- 
stock's,"  Shinn's  modern  work,  "The  Story  of  the  Mine,"  pub- 
lished by  Harper  Bros.,  is  recommended.  The  author  has  used 
many  of  the  statistics  from  that  book  in  this  chapter. 


364    ROCKS  IN   THE  ROAD  TO  FORTUNE 

and  had  just  got  ready  to  tell  the  truth;  I  don't 
know.  Anyway,  I  jumped  up  and  ran  out  when  I 
had  the  word;  you  never  saw  a  reporter  go  faster. 
We  drove  to  the  mine  and  went  down  to  the  richest 
place  in  the  bonanza. 

"Fair  said:  'Go  in  and  climb  around.  Look  all 
you  want,  measure  it  up,  make  up  your  own  mind; 
I  won't  tell  you  a  thing;  people  will  say  I  posted 
you  I'  And  so  he  went  away.  That  just  suited  me. 
After  I  was  through  I  went  to  the  'Enterprise'  of- 
fice and  wrote  two  articles,  one  of  which  you  have 
just  quoted  from.  That  was  the  first  authentic  ac- 
count of  the  big  bonanza,  and  that  was  the  way  the 
'Enterprise'  had  a  scoop." 

A  little  later  a  visitor  to  the  mine  "stood  where 
the  miners  were  digging  ore,  and  looked  a  hundred 
feet  upward  and  on  each  side  across  the  ore  body. 
On  all  sides  of  a  pyramidal  mass  of  timbers,  grow- 
ing larger  each  moment  under  the  toil  of  busy 
hands,  were  twinkling  stars  of  lamps  where  men 
were  hewing  at  the  sides  and  ceiling."  Often  the 
sides  of  the  huge  cavern  glistened  as  if  set  with  sil- 
ver; but  this  was  not  silver — only  crystals  of  iron 
and  copper  pyrites.  There  were  also  great  masses 
of  blue,  purple,  and  white  crystals  of  quartz,  some 
of  them  weighing  many  pounds,  with  crystals  sev- 
eral inches  long.  The  miners  say  of  a  vein  that  con- 
tains such  crystals  that  "it  is  alive"  and  think  that 
the  best  of  signs  of  a  large  bonanza.  Chloride  sil- 
ver ore  is  pale  green  and  steel  gray  in  color.    "Silver 


ROCKS  IN  THE  ROAD   TO  FORTUNE     365 

glance"  is  black  anji  lustrous.  The  general  color 
scheme  of  the  great  bonanza,  despite  an  occasional 
glitter  of  crystals,  ranged  from  bluish  gray  to  deep 
black. 

All  of  the  contents  of  the  bonanza  were  sent  to 
the  mill  just  as  it  was  blasted  or  hewn  out.  Some 
of  the  ore  was  so  rich  that  waste  rock  and  low-grade 
ore  were  mixed  with  it  in  order  to  work  it  better. 
An  average  block  of  ore  three  feet  square  contained 
from  three  hundred  to  five  hundred  dollars  in  silver 
and  gold.  Even  in  the  widest  part  of  the  ore  body, 
three  hundred  feet  across  the  entire  contents  were 
milled  without  assorting.  Some  of  the  richest  ore 
was  near  the  line  of  the  California  mine  where  a 
mass  of  porphyry  crowded  the  ore  into  less  space. 
The  silver  here  was  often  in  the  form  of  crystals  of 
stephanite,  or  in  bunches  of  pure  and  malleable  sil- 
ver, in  coiled  wires,  and  in  silver  crystals.  There  is 
hardly  any  more  beautiful  sight  in  a  mine  than  a 
"nest"  of  wire  gold  or  wire  silver  gleaming  in  the 
dark  sulphurets.  A  few  of  the  more  exquisite  com- 
binations of  metals  and  crystals  that  occur  at  times 
in  mines  of  the  first  rank  are  still  preserved  in  cabi- 
nets, but  by  far  the  greater  part  have  been  de- 
stroyed, sent  to  the  mill  if  valuable  mineral,  or  to 
the  dump  heap  if  unremunerative.  Old  miners  in 
some  of  the  famous  mines  tell  stories  of  cavities  as 
large  as  an  ordinary  room  into  which  a  drift  will 
sometimes  break;  cavities  set  thick  with  rock  crys- 
tals of  every  beautiful  color  known  to  the  miner- 


366    ROCKS  IN  THE  ROAD  TO  FORTUNE 

alogist — white,  pale  pink,  olive  green,  rose,  purple, 
or  violet.  In  such  a  glorious  place  it  seems^  even  to 
the  ignorant  miners,  as  if  the  jewel  caskets  of  mon- 
archs  had  been  surpassed,  for  here  Nature  has  the 
hues  of  sapphire,  emerald,  tourmaline,  amethyst, 
chrysophane,  opal,  and  lapis  lazuli.  Such  crystal 
rooms  are  extremely  rare,  and  more  often  occur  in 
New  Mexico  and  Sonora  than  in  Nevada  districts. 
One  ore  chamber  ten  feet  square,  situated  about 
fourteen  feet  south  of  the  California  line,  seemed 
to  Comstockers  the  richest  part  of  the  lode,  and 
many  specimens  of  ore  from  here  were  saved  for 
collectors  in  various  parts  of  the  world. 

Now  that  the  Pacific  coast  was  stirred  with  the 
great  news,  estimates  of  the  actual  "ore  in  sight" 
began  to  be  in  order.  I  have  alluded  to  the  first 
newspaper  estimate  of  about  |116,000,000.  Next 
came  Mr,  Diedesheimer,  the  inventor  of  the  "square- 
set  system"  and  one  of  the  most  careful  mining  en- 
gineers on  the  Pacific  coast.  He  reported  to  the 
directors  that  there  was  enormous  amounts  in  sight. 
A  little  later  he  gave  proof  of  his  faith  in  his  own 
report  by  putting  every  dollar  he  could  raise  into 
shares  in  the  two  mines  at  the  highest  price.  Even 
the  director  of  the  Carson  mint,  with  his  assistants, 
who  examined  the  bonanza,  was  unable  to  fix  any 
definite  limit  to  its  yield  and  thought  there  was  not 
less  than  |300,000,000  already  in  sight.  Mackay, 
however,  a  miner  of  unsurpassed  judgment,  utterly 
refused  to  make  any  estimate,  and  flatly  said  it  was 


.^JL 


ROCKS  IN  THE  ROAD  TO  FORTUNE     367 

an  impossible  task,  because  barren  masses  of  rock, 
porphyry,  the  difficulty  of  obtaining  accurate  as- 
says, and  many  other  elements  of  uncertainty  made 
calculation  absurd.  He  "preferred  to  mine  it  out 
first  and  then  take  the  milling  returns." 

The  public  made  loud  demands  for  estimates, 
and  for  a  thousand  other  details,  often  beyond  the 
power  of  human  ability  to  satisfy.  Whatever  was 
said  or  was  left  unsaid,  the  men  who  controlled  the 
bonanza  were  abused  and  misrepresented.  That 
was  a  part,  and  no  small  part,  of  the  price  they  had 
to  pay  for  their  fulfilled  ambitions.  Powerful 
though  Mackay  and  his  companions  were  in  their 
own  field,  neither  they  nor  any  other  men  could  con- 
trol the  genius  they  had  released  from  the  casket  of 
the  bonanza.  The  actual  available  capital  of  the 
Pacific  slope  that  could  be  put  into  mining  ventures 
in  January,  1875,  was  not  greater  than  |20,000,000. 
To  tie  up  more  than  this  in  such  investments  or  spec- 
ulations would  be  to  injure  and  seriously  check  the 
growth  of  the  western  third  of  the  continent.  Now, 
as  already  shown,  the  stockboard  valuation  put 
upon  the  two  bonanza  mines  in  that  month  was 
$160,000,000.  It  is  not  likely  that  more  than  a 
fourth  of  the  stock  was  ever  in  the  market,  but  the 
entire  Pacific  coast,  as  above  stated,  could  not  have 
bought  and  paid  for  more  than  twenty  millions' 
worth. 

Then,  too,  in  addition  to  the  immense  and  prob- 
ably justifiable  valuations  put  upon  the  Consolidat- 


368    ROCKS  IN  THE  ROAD  TO  FORTUNE 

ed  Virginia  and  California,  every  other  mine  upon 
the  lode  had  greatly  risen  in  estimated  value.  The 
prices  paid  in  January,  1875,  showed  that  Ophir  had 
risen  to  over  131,000,000  because  it  was  next  to  the 
bonanza  mines;  Best  and  Belcher  was  rated  at  near- 
ly 19,000,000,  and  Mexican  a  trifle  higher;  Gould  and 
Curry,  Savage,  Exchequer,  Yellow  Jacket,  Overman, 
Bullion,  Crown  Point,  and  several  others  were 
valued  at  from  three  to  twenty  millions  apiece.  It 
made  little  or  no  difference  where  they  were  located. 
Indeed,  the  theory  was  now  held  by  most  specula- 
tors that  every  so-called  "barren"  place  in  the  lode 
would  prove  to  have  immense  ore  bodies  somewhere 
below  the  thousand-foot  level.  The  total  valuation 
of  all  the  mines  on  the  lode  at  this  date  was  |393,- 
253,440.  How  much  gold  coin  would  really  have 
been  needed  at  this  time  to  buy,  not  merely  the 
floating  stock  in  the  market,  but  also  enough  to  con- 
trol every  mine  on  the  lode,  is  hardly  to  be  esti- 
mated.   There  was  not  enough  coin  in  America. 

Prices  of  shares  had  no  influence  upon  the  work 
in  the  mines.  Through  good  days  and  evil  the  ore 
yield  increased.  Consolidated  Virginia  extracted 
about  12,000  tons  in  1873,  producing  in  bullion 
1645,000;  in  1874,  91,000  tons,  of  a  milling  value  of 
14,981,000;  in  1875,  169,000  tons,  milling  over  $16,- 
000,000;  and  in  1876,  142,000  tons,  milling  over 
116,000,000.  Then  the  product  began  to  lessen.  The 
exact  amount  of  ore  extracted  in  six  years  ending 
with  1878  was  682,385  tons.     The  bullion  product 


(B) 


Longitudional  section  of  two  American  mines  and  one  Mexican  mine  Showing 
how  the  ore  shoots  lay.  The  ore  bodies  represented  by  map  B.  has  produced  over 
^300,000,000.  The  lowest  shoot  under  the  Con  Virgina  shaft  is  the  Big  Bonanza 
that  produced  1114,000,000.      The  reader  can  see  that  shoots  are  not  continuous. 


I 

I 


ROCKS  IN  THE  ROAD  TO  FORTUNE     369 

was  160,732,882.  California  in  1875  and  the  three 
years  following  extracted  486,043  tons  of  ore,  which 
gave  the  total  bullion  yield  of  $43,727,831.  Nearly 
1105,000,000  was  the  product  of  the  Big  Bonanza,  as 
Comstockers  have  always  called  this  body  of  ore. 

As  for  dividends,  everything  was  done  to  in- 
crease them.  The  returns  to  stockholders  were^un- 
precedented  in  the  stories  of  great  mining  enter- 
prises. By  the  middle  of  1879  Consolidated  Virginia 
had  paid  fifty-two  dividends  aggregating  |42,120,- 

000  and  California  had  paid  in  dividends  |31,050,000. 
A  thousand  miners  were  employed;  a  new  and  much 
larger  shaft  was  sunk.  Mills  and  machinery  had 
been  rebuilt  and  enlarged  at  great  expense.  The 
stock  of  the  thirty  mines  on  the  lode  was  valued 
in  1875  at  |393,000,000. 

Here  is  an  object  lesson.  There  were  two  classes 
of  operators  on  the  Comstocks,  the  miner  and  the 
speculator;  of  the  two  the  miner  was  the  most  im- 
portant; he  gave  the  world  the  new  wealth;  the 
speculator  then,  as  now,  gave  the  world  nothing, 
but  took  from  one  to  enrich  the  other.  Mackay  and 
Pair  created  an  imperishable  wealth  and  the  vast 
fortunes  built  up  were  deserved.  The  words  of 
Mackay,  "My  business  is  mining,  not  speculating. 

1  make  money  here  out  of  the  ore,"  is  the  motto  that 
all  honest  commercial  miners  follow,  and  in  work- 
ing out  the  problem  of  ore  extraction  on  those  lines 
no  man  is  injured.    The  world  always  profits. 

There  are,  no  doubt,  many  other  bonanzas  hid- 


370   ROCKS  IN  THE  ROAD  TO  FORTUNE 

den  deep  in  the  bowels  of  the  earth,  and  many  poor 
men  like  Mackay,  Fair  and  Jones  will  unlock  the 
doors,  enjoy  the  millions,  then  pass  them  on  to  the 
uses  of  the  world. 

The  writer  has  been  asked  if  there  is  a  future  to 
the  Comstocks.  The  answer  is.  Yes.  As  science 
perfects  labor-saving  devices,  as  electricity  super- 
sedes steam  in  pumping,  as  the  treatment  charges 
of  ores  are  lessened,  there  will  be  millions  upon 
millions  of  new  wealth  taken  from  the  Comstocks, 
especially,  from  the  veins  that  lie  to  the  south  and 
commonly  known  as  Silver  City.  Then  the  question 
of  ore  at  a  greater  depth  than  3,200  feet  is  yet  to 
be  answered.  The  great  veins  that  parallel  the 
Comstocks  in  the  Como  Mountains  are  yet  to  be  con- 
sidered. There  is  more  than  a  remote  possibility 
that  there  will  be  new  life  near  Virginia  City. 
There  were  many  ledges  cut  by  the  Sutro  tunnel 
which  are  yet  to  be  fully  explored.  No  mining  camp 
is  ever  dead;  it  may  be  asleep,  but  not  dead;  in  fact 
during  the  author's  last  visit  to  Nevada  there  were 
rumors  of  new  bonanzas,  and  I  believe  there  is  hope. 


CHAPTER  XXVIII. 

Bonanza  Mines  of  America  Operated  on  Com- 
mercial Lines — Great  Dividends — The  Follies  of  the 
Past — To-Day's  Success — The  Question  of  Deep- 
seated  Enrichments. — The  Feature  of  American 
Mines. 

While  travelling  through  Eastern  cities,  the 
writer  frequently  met  persons  who,  from  their  dis- 
appointments, were  biased  in  their  views  relative  to 
the  soundness  of  the  industry;  many  displayed  what 
they  considered  evidence  of  mine  ownership — that  is 
cheap  type-printed  certificates — intimating  on  their 
face  that  they  covered  mines  which  no  doubt  repre- 
sented perhaps  a  location,  or  a  few  feet  of  unskill- 
fully  applied  work.  In  no  case  was  there  evidence 
of  commercial  operations  submitted. 

The  operations  of  yesterday  should  not  be  com- 
pared with  those  of  to-day;  there  has  been  born  a 
new  industry;  remarkable  advances  in  all  its  av- 
enues have  taken  place.  So  deep  have  we  read  into 
the  pages  of  the  book  of  nature  that,  while  we  do 
not  understand  all  of  geology,  we  know  that  the 
achievements  of  our  scientists  and  inventors,  work- 
ing upon  the  great  problems  of  labor-saving  devices 

371 


372         ROCKS  IN   THE  ROAD  TO  FORTUNE 

and  metallurgical  treatments,  are  fast  drawing  us 
to  the  period  when  the  word  "impossible"  will  be 
used  with  great  caution. 

The  progress  in  metallurgy  has  been  so  marked 
that  a  mine  that  would  have  ruined  a  National  Bank 
fifteen  years  ago  is  to-day  a  reservoir  of  wealth. 
Within  the  mining  life  of  the  writer,  the  smelting 
charges  on  ordinary  ore  in  the  central  portion  of  the 
United  States  has  been  reduced  from  $30  a  ton  to 
|6  a  ton.  This  means  that  100,000  tons  of  ore,  worth- 
less a  decade  ago,  would  to-day  be  worth  |2,000,000. 
The  cost  of  transportation,  mining  and  milling  in  a 
well-known  district  has  been  reduced  from  |90  a  ton 
in  1862  to  |12  a  ton  in  1907.  The  writer  knows  of 
one  mine  in  that  district  that  as  late  as  1882  shipped 
1,000  tons  of  ore  worth  flOO  per  ton  which  returned 
less  than  |15,000  net.  The  profit  on  the  same  ore 
to-day  would  be  .^70,000.  Thus  the  improving  con- 
ditions are  solving  the  problems  that  man  gave  up 
as  "impossible." 

Many  mines  where  rich  ore  was  extracted,  leaving 
behind  great  bodies  of  w.hat  was  known  at  that  time 
as  worthless  ore,  are  to-day  operating  with  greater 
profit  upon  the  so-called  valueless  ore  than  they  did 
at  that  time  upon  the  high-grade  ore.  At  Cripple 
Creek  old  dumps  containing  ore,  discarded  ten  years 
ago,  are  being  shipped  bodily  to  the  mills.  So  suc- 
cessful has  become  the  science  of  mining  and  milling 
that  nearly  all  of  the  failures  of  the  past  decade, 
where  any  ore  did  exist,  are  the  basis  of  the  success 
to-day.    Some  of  the  world's  greatest  enterprises  are 


ROCKS  IN   THE  ROAD  TO  FORTUNE      373 

reapinji,  their  stores  of  wealth  through  gathering  up 
the  broken  threads  of  the  labors  prosecuted  by  the 
earlier  miners  with  such  heavy  losses  and  discour- 
agements. 

If  we  were  to  compare  the  miner  of  1908  with  the 
miner  that  the  writer  met  when  he  first  passed 
through  Clear  Oeek  County,  Colorado,  in  1875,  it 
would  be  like  comparing  the  magnificent  telephone 
system,  as  perfected  to-day,  with  the  single  wire  and 
crude  equipment  that  Alexander  Bell  experimented 
upon  at  the  time  he  gave  his  first  public  demonstra- 
tion. Conditions  that  were  absolutely  impossible 
thirty  years  ago,  are  so  universally  common  now, 
that  little  thought  is  given  to  the  mighty  changes 
that  have  taken  place.  This  is  an  age  of  commercial 
mining,  that  of  wild  speculation  has  passed.  Every 
economical  point  of  interest  to  mine  or  prospect  is 
to-day  considered.  The  saving  of  pennies  is  con- 
sidered, as  is  done  in  all  lines  of  industrial  activity. 

Two  years  ago  I  read  an  article  ^Titten  by  either 
Capt.  J.  Smith  or  Gen.  Hall,  both  eminent  Western 
mining  writers,  in  which  the  question  of  the  in- 
fluence of  the  telephone  was  discussed,  and,  while 
that  item  would  not  be  considered  by  many  of  those 
who  invest  in  prospect  shares,  it  was  shown  that  the 
introduction  of  the  telephone  into  the  mining  indus- 
try had  made  a  saving  so  large  as  to  be  incredible. 
In  the  earlier  days,  a  man  working  on  the  thousand- 
foot  level  of  a  mine,  who  wanted  timber,  tools  or 
supplies,  went  up  to  the  surface  in  a  bucket  and 
brought  them  down.  When  called  upon  to  go  to  town 


374    ROCKS  IN  THE  ROAD  TO  FORTUNE 

for  supplies,  he  rode  on  the  hurricane  deck  of  a 
mule,  or  tramped  the  mountain  trail.    Thus  the  loss, 
not  only  of  time,  but  figuring  the  cost  of  labor,  was 
heavy.    To-day  nearly  every  great  mine  in  the  West 
is  equipped  with  a  telephone  system,  the  object  of 
the  mine  superintendent  being  to  keep  his  men  un- 
disturbed, at  the  faces  of  their  drift,  fighting  the 
rock  with  air,  steam  or  electricity — the  more  rock 
broken,  the  greater  the  profit.    The  introduction  of 
the  time  clock  has  made  an  improvement  and  saving. 
Where  men  understand  that  there  is  a  record  kept 
of  the  time  they  enter  and  leave,  there  a  spirit  of 
punctuality  is  born.    Thirty  years  ago  dynamite  was 
practically  unused,  the  old  black  powder  being  the 
explosive  employed.    The  author  recalls  the  system 
of  soaping  brown  paper  cartridges  then  used  in  sink- 
ing wet  holes;    it  all  seems  so  far  away  when  the 
present  is   considered.     There  were  then  but  few 
mines  in  the  United  States  operated  by  compressed 
air.  The  electric  pump  had  not  been  invented.  Thus, 
those  who  were  of  the  opinion  that  they  were  min- 
ing thirty  years  ago  should  put  their  experience  be- 
hind them  without  a  regret  and  start  anew;    they 
were  simply  pioneering,  blazing  the  trail  for  the 
present  wonderful  system  of  commercial  operations 
under  which  even  a  six-dollar  ore  is  profitable. 

In  the  old  days,  when  mineral-bearing  rocks  were 
thrown  over  the  dumps  as  useless,  and  general  fail- 
ure followed  the  efforts  of  the  unskilled,  those  same 
dumps  are  to-day  being  «leared  of  shrubbery,  trees 
and  moss,  and  the  so-called  refuse  of  a  quarter  of  a 


ROCKS  IN  THE  ROAD  TO  FORTUNE     375 

century  ago  is  bonanza  ore  to-day.  Year  by  year 
our  smelting  and  reduction  institutions  are  devising 
closer  economies  that  they  may  treat  greater  vol- 
umes of  a  lower  grade. 

Past  disappointment  should  be  but  the  spur  to 
win  present  and  future  success.  The  losers  should 
feel  no  spirit  of  resentment  against  the  great  in- 
dustry that  was  not  responsible  for  their  mistakes 
or  lack  of  judgment  in  human  nature.  They  should 
now  actually  mine;  the  way  is  open.  Never  in  the 
history  of  the  world  was  there  such  fortune-building 
opportunities  as  is  now  at  hand.  The  collossal  for- 
tunes credited  to  the  miners  of  the  Comstocks,  the 
kings  of  copper,  silver  and  gold,  who  owe  their 
wealth  to  Montana,  Colorado,  Arizona,  Utah  Gold- 
fields  and  California,  may  see  their  fortunes  far  out- 
stripped by  men  who  are  to-day  laboring  at  a 
bench.  We  have  known  so  little  of  mining  in  the 
past  that  the  efforts  of  thirty  years  ago  may  be 
compared  to  Watt  watching  the  lid  of  the  kettle 
when  he  conceived  the  idea  of  controlling  steam, 
with  the  magnificent  and  powerful  mechanical  won- 
ders that  to-day  move  the  industrial  world. 

The  professional  ignorance  of  the  miners  of  1880, 
when  viewed  from  the  advanced  standpoint  of  to- 
day, is  appalling.  When  the  writer  first  entered 
Arizona,  there  prevailed  an  impression  that  the 
mines  did  not  extend  to  depth.  It  was  believed  that 
the  surface  enrichments  ended  their  profitable  life. 
In  other  states  and  territories  it  was  believed  that 
the  deeper  the  development  the  leaner  the  values. 


376    ROCKS  IN  THE  ROAD  TO  FORTUNE 

As  sinking  progressed  to  the  depth  of  1,000  or  1,200 
feet,  this  theory  was  born  out;  there  did  appear 
that  lean  zone,  which  the  miner,  however,  to-day 
understands.  But  1,000,  2,000,  or  even  3,000  feet  in 
the  earth  is  not  sufficient  to  solve  the  secrets 
of  nature  in  any  district.  With  recent  improve- 
ments, deeper  workings,  we  have  found,  show  that 
below  the  first  enrichment,  there  often  lies  a  com- 
paratively barren  zone.  Invariably,  hoAvever,  there 
follows  a  deeper  enrichment.  In  the  State  of  Colo- 
rado enrichments  exist  at  from  2,000  to  2,400  feet; 
and  one  shaft  is  projected  to  go  to  the  depth  of 
4,000  feet.  While  the  miner  is  busy  opening  ground, 
the  geologist  is  fast  at  his  heels,  reading  the  forma- 
tions, explaining  to  other  scientists  the  reasons  for 
the  interruptions  between  the  surface  and  the 
deeper  underlying  ore  bodies;  thus  the  experiments 
in  Africa  are  followed  with  profit  in  every  district 
in  America. 

\Then  the  writer  was  twenty,  and  egotistically 
considered  himself  a  miner — as  miners  went  in  the 
past — he  was  under  the  belief  that  sandstone  could 
not  contain  mineral;  that  only  certain  rocks  of  the 
primary  age  could  make  fissure  veins — foolish  be- 
liefs, through  which  many  fortunes  have  been 
thrown  aside.  As  the  intelligence  of  that  splendid 
body — The  American  Institute  of  Mining  Engineers 
— is  applied  to  mining,  we  unearth  commercial 
bodies  of  ore  in  almost  every  formation.  Even 
petrified  trees  at  Silver  Reef,  Utah,  show  values. 


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ROCKS  IN  THE  ROAD  TO  FORTUNE      377 

Thus  the  dogmas,  the  old  theories,  are  exploded  by 
the  advancing  army  of  progressive  miners. 

The  problem  to  be  solved  in  the  next  few  years  is 
the  existence  of  ore  at  4,000,  5,000,  or  even  8,000 
feet.  These  depths  are  startling  to  the  novice,  but 
not  to  the  miner.  There  is  now  one  shaft  in  a  Lake 
Superior  copper  mine,  nearly  6,000  feet  deep,  and  the 
ore  is  still  in  place;  why  not  at  8,000  feet?  In  lower 
altitudes  gold  mines  are  past  the  3,000  foot  line. 
What  the  enrichments  may  be  at  greater  depths  we 
are  not  able  to  say.  The  evidence  is  favorable  to 
more  wonders  of  the  mineral  world.  It  may  be, 
that  there  is  a  continuous  line  of  enrichments  down 
as  far  as  man  can  go  with  his  puny  appliances.  A 
few  weeks  ago  the  w^riter  was  discussing  the  ques- 
tion of  the  oil  and  gas  stratas  of  the  State  of  Penn- 
sylvania, with  one  of  the  most  distinguished  and 
successful  operators  in  that  section,  and  he  claimed 
that  no  man  could  tell  the  depth  limit  of  gas,  oil, 
or  metal  stratifications,  and  as  an  illustration  stated 
the  fact,  that  in  the  beginning  they  held  the  impres- 
sion that  the  600  foot  stratification  was  the  limit; 
then  operators  went  further  and  struck  another,  and 
more  productive  stratification  at  the  1,600  foot  point, 
and  now  they  have  gone  still  further  and  found  a 
new  layer,  more  productive  than  either  of  the  first 
two,  at  the  depth  of  2,500  to  3,000  feet.  Thus  no  man 
knows  what  the  earth  will  show  in  its  stores  of 
precious  metals  at  7,000  feet.  Only  recently  there 
was  struck  a  new  ore  body  in  one  of  the  Comstock 
veins  at  the  depth  of  3,200  feet  at  a  point  where  the 


378    ROCKS  IN  THE  ROAD   TO  FORTUNE 

miners  thought  no  ore  existed;  jet  here  was  opened 
up  indications  of  a  new  enrichment  running  |60  a 
ton.  Therefore  the  writer  claims  the  only  way  to 
test  out  a  mine  is  to  do  work  wherever  sound 
evidence  indicates  the  possible  presence  of  ore,  con- 
sequently a  system  which  does  not  do  actual  explora- 
tion, when  money  is  supplied  for  that  purpose,  is 
deplored. 

Mining  as  an  investment  is  fast  gaining  a  deep- 
seated  confidence  in  the  minds  of  those  who  reason. 
There  was  a  time  when  the  banking  interests,  with 
a  desire  to  discourage  depositors  from  drawing  their 
funds  to  invest  in  mines, — thus  curtailing  the 
bankers'  business  of  discounting  commercial  paper, 
— decried  mining  as  risky,  as  being  operated  by  in- 
experienced or  dishonest  men.  But  the  people  are 
awake  to  the  fact  that  there  is  a  difference  between 
commercialism  and  mere  stock  speculation;  that 
there  is  the  same  certainty  about  the  extraction  of 
precious  metals  and  profits  from  proven  ore  bodies, 
as  there  is  the  extraction  of  profit  from  coal  and 
iron.  They  are  aware  that  without  the  raw  material 
of  money,  which  the  mine  alone  can  give,  there 
would  be  but  little  material  wealth  behind  the  cur- 
rency of  the  banks.  Besides,  the  banker  himself 
now  seems,  not  always,  to  be  the  soundest  of  the 
sound;  they,  too,  speculate  and  even  try  to  win 
great  wealth  from  mines,  the  very  avenue  that,  in 
the  past,  they  decried.  It  has  become  widely  known 
that  the  great  money  interests  did  not,  in  the  past, 
know  the  meaning  of  commercialism  in  mines.     A 


ROCKS  IN  THE  ROAD   TO  FORTUNE     379 

few  months  ago  the  author  was  a  guest  at  a  dinner 
given  by  the  Bankers'  Club  of  Chicago;  at  his  side 
sat  President  Reynolds,  of  the  Great  Continental 
National  Bank,  In  a  conversation  Mr.  Reynolds 
said:  "I  never  heard  the  word  'commercialism' 
applied  to  mining  before." 

Thus,  with  a  better  acquaintanceship,  with  the 
knowledge  that  the  mines  can  afford  a  higher  rate 
of  interest,  with  comparatively  equal  safety  to  the 
five  or  six  per  cent,  industrial  investments  of  the 
east,  mines  naturally  attract  more  capital,  men  have 
awoke  to  the  fact  that  the  bank  is  not  always  sound, 
not  half  as  sound  as  a  good  commercial  mine,  where 
the  deposits  are  lying  underground,  beyond  the  reach 
of  those  who  might  misappropriate  the  same,  there 
to  be  drawn  upon,  day  by  day,  and  circulated  as  the 
people  need  the  gold  and  silver. 

Thus  to  decry  mining,  and  say  that  the  banks  are 
better, — while  the  author  admits,  that  the  savings 
bank,  is  a  safer  investment,  provided  a  man  is  rich 
enough  to  be  satisfied  with  3  per  cent. — it  is  not, 
however,  always  the  case  with  other  banks.  On 
January  27th  of  the  present  year,  the  writer  clipped 
the  following  from  an  editorial  in  the  New  York 
Journal,  which  referred  to  a  certain  National  Bank 
that  had  just  closed: 

"Three  months  ago  this  bank  had  deposits 
aggregating  twenty-four  millions  and  was  appar- 
ently as  thriving  a  money  mill  as  ever  ground  out 
dividends;  now  its  doors  are  closed  and  a  National 
Bank  examiner  is  in  charge." 


380         ROCKS  IN  THE  ROAD  TO  FORTUNE 

The  day  has  passed  when  selfish  interest  can  keep 
intelligent  and  willing  American  capital  from  in- 
vesting in  legitimate  mine  operations;  and  while 
there  is  a  risk  in  the  search  for  metals,  the  enormous 
dividend  possibilities  make  these  investments  more 
desirable  than  those  of  the  lower  interest  bearing 
securities,  which  necessarily  always  possess  specula- 
tive elements. 

Wherever  you  look  in  any  avenue  of  the  great 
mining  industry,  there  is  seen  the  stami)  of  advance- 
ment. The  people  are  advancing  in  their  reasonable- 
ness, they  no  longer  expect  nature  to  give  up  its 
stores  of  wealth  without  a  struggle;  they  appreci- 
ate that  a  great  mercantile  business  or  industrial 
enterprise  of  any  kind  requires  time  in  the  laying  of 
its  profit-earning  foundation,  before  even  bonanza 
ore  bodies  found  to-day  can  be  converted  into 
the  coin  of  the  realm  to-morrow.  They  no  longer 
expect  more  from  mining  than  even  that  rich  profit- 
earning  avenue  can  return.  The  day  when  an  un- 
scrupulous man  may  obtain  money  upon  mere 
promise  has  passed;  unreasonable  and  sensational 
claims  quickly  stamp  the  enterprise  as  one  to  be 
scrutinized.  It  is  realized  that  it  takes  money  to 
open  veins  and  erect  mills;  both  require  time;  the 
people  are  inclined  to  grant  it.  The  day  for  the 
penny  operator  has  passed;  he  can  no  longer  ply 
his  trade  with  impunity;  he  must  base  his  assertions 
upon  facts.  The  efficient  Post  Office  Inspectors  are 
watching  their  every  move,  thus  safeguarding  the 
investments  of  the  people.     We  have  advanced  in 


ROCKS  IN  THE  ROAD   TO  FORTUNE        381 

the  age  of  publicity,  leaving  everything  of  a  dark, 
or  star-chamber  nature  behind.  The  argument  of 
the  unsound,  who,  when  the  searchlight  of  truth  is 
turned  upon  him,  cries  blackmail  at  every  individual, 
or  daily  paper,  who  demands  the  facts  relative  to 
sensationally  promoted  ventures,  is  no  longer  con- 
sidered as  worthy  of  answer. 

There  is  a  new  era  in  mining,  the  era  of  the  sound, 
the  era  that  is  to  bring  results,  which  the  commer- 
cial miners  of  the  United  States  are  eager  to  share 
with  those  who  advanced  the  capital  needed  in  their 
battle  with  nature,  that  the  metallic  veins  will  be 
forced  to  disgorge  more  of  the  hidden  wealth,  needed 
in  the  march  of  progress. 

Prejudices  are  swept  away,  pride  and  personal 
egotism  is  no  longer  a  factor,  the  theories  of  men 
crumble  as  we  advance.  With  mature  experience 
we  find  that  that  which  at  one  time  was  considered 
detrimental  is  really  beneficial.  A  few  years  ago 
the  leasing  system  was  decried,  it  is  now  the  writer's 
opinion  that  within  ten  years  all  great  dividend- 
paying  precious  metal  mines,  and  perhaps  copper 
mines,  will  be  operated  upon  these  lines,  the  mine 
owners  being  called  upon  to  do  the  development 
work,  maintain  their  property  and  the  establishing 
of  concentrating  plants  in  which  the  lessee  may 
have  his  ore  treated  at  a  fair  figure.  Thus,  there 
will  be  two  systems  of  mining,  the  individual  ex- 
traction, and  the  corporate  or  individual  ownership 
of  the  property  in  fee. 

In  the  past  leasing  was  considered  as  injurious, 


382    ROCKS  IN  THE  ROAD  TO  FORTUNE 

it  being  claimed  that  the  work  was  not  well  done; 
the  term  '^gutting"  was  coined,  but  the  word  is 
misapplied  at  the  present  time.  After  years  of  ex- 
perience with  this  individual  system,  it  has  been 
proven  sound,  and  where  ore  exists  in  paying  bodies 
in  the  best  mines  in  the  United  States,  there  is  found 
the  lessee,  the  company  by  its  term  of  contract 
protecting  its  property  against  unworkmanlike  ore 
extraction.  The  lease  system  was  in  vogue  in  the 
mines  of  Guanajuato,  Mexico,  when  the  writer  first 
visited  that  camp,  and  he  was  informed  that  the 
tribute  system  had  existed  for  a  hundred  years. 

The  rich  mines  of  Goldfleld  and  Tonopah,  Nevada, 
to  which  the  commercial  miner  of  this  country  looks 
so  earnestly  for  a  staple  production,  owe  their  fame 
to  this  form  of  mining.  It  is  said  that  the  total 
production  of  Cripple  Creek  has  amounted  to  $225,- 
000,000.  It  is  safe  to  say  that  at  least  175,000,000 
of  that  vast  amount  was  the  direct  result  of  the 
lessees,  and  that  district  is  to-day  practically 
operated  upon  those  lines.  There  are  many  mines 
to-day  in  operation,  making  profitable  returns,  which 
would  have  been  closed  years  ago  had  not  the  lessees 
won  them  a  new  life.  While  leases  often  make 
millions  of  profit  for  the  operators  they  build  up 
the  reputation  of  the  camps  and  attract  capital. 
It  is  stated,  that  while  one  set  of  lessees  took  for 
their  share  |3,750,000  of  the  product  of  the  famous 
Mohawk  gold  mine  of  Goldfleld,  Nevada,  and  in  the 
same  district  eight  other  properties  operating  under 
lease   increased   the   output   |7,000,000   more,   the 


ROCKS  IN  THE  ROAD   TO  FORTUNE        383 

system  has  added  to  the  reputation  of  the  region, 
and  caused  prospectors  to  search  for  new  ore  in 
other  localities.  Whatever  the  future  fame  of  the 
State  of  Nevada  may  be,  it  can  largely  be  attributed 
to  that  form  of  operation. 

The  investor,  not  in  close  touch  with  the  industry, 
seldom  hears  of  the  magnificent  records  made  by 
the  mines  operated  upon  commercial  lines,  except 
through  information  imparted  in  a  general  manner 
by  some  promoter  as  an  argument  to  buy  his 
prospect  shares.  Thus  the  history  of  such  famous 
mines  as  the  Bunker  Hill  and  Sullivan,  of  Idaho, — 
that  have  so  far  paid  over  |10,000,000  in  dividends; 
in  1906  paid  |2,340,000;  and  in  the  year  just  passed 
11,960,000,— is  but  litle  known;  or  the  Hercules, 
which  paid  |1,030,000  last  year;  the  Federal  Mining 
&  Smelting  Company,  which  in  the  past  twelve 
months  disbursed  |1,710,000.  Nor  is  the  system,  em- 
ployed in  the  Coeur  de  Alene  district  explained, 
from  which  the  mining  of  low  grade  ore  last  year 
enriched  those  interested  to  the  extent  of  |5,000,000. 
Also  the  Utah  Consolidated,  or  the  United  States, 
both  of  Utah,  that  returned  nearly  |5,000,000  in 
dividends  in  1907;  the  names  may  be  known,  but 
the  magnitude  of  the  operations  but  little  under- 
stood. Even  w^ay  off  in  Mysora,  India,  commercial 
mining  now  has  a  firm  foothold,  and  we  find  fifteen 
producing  mines  with  a  total  capital  investment  of 
$15,000,000,  upon  which  they  pay  a  flat  dividend  of 
38  per  cent,  upon  the  full  amount.  The  dividends 
earned  from  American  mines  last  year,  were  sufii- 


384    ROCKS  IN  THE  ROAD  TO  FORTUNE 

cient  to  give  every  man,  woman  and  child  in  the 
United  States  two  dollars  each. 

The  era  of  low  capitalization  is  here.  The  wild 
dreamer  with  his  |5,000,000  capital  on  a  $1,000  hole, 
has  no  standing.  It  is  shown  that  such  mines  as 
the  Portland,  only  capitalized  at  $3,000,000,  has  paid 
its  shareholders  |7,747,000,  and  more  than  enough 
ore  blocked  to  pay  $3,000,000  more.  The  great 
Camp  Bird  mine  paid  last  year  twenty-four  per 
cent,  in  dividends,  a  total  of  |4,000,000,  upon  a  total 
outstanding  capitalization  of  $4,100,000,  and  the 
mine  shows  about  $4,500,000  blocked  out  ready  for 
the  mill,  and  the  returns  are  twenty-seven  per  cent, 
profit  on  its  ore  extraction.  The  Homestake  shows 
forty  per  cent,  profit  upon  its  ore  extraction.  Thus 
all  through  the  commercial  avenue  of  mining,  so 
little  understood  in  the  East,  enormous  returns  are 
shown. 

During  this  last  stringency  in  the  money  market, 
the  commercial  mines  of  the  United  States  were  the 
medium  that  supplied,  and  were  looked  to  for  a 
quick  stimulant,  and  it  only  came  from  mines 
operated  and  capitalized  upon  reason.  There  are 
thirty-three  mining  enterprises  in  the  United  States 
capitalized  at  $302,000,000,  or  an  average  of  less 
than  $1,000,000  each,  that  have  already  paid  in 
dividends  84  per  cent,  of  their  total  issued  capital. 
One  mine,  the  United  Verde,  of  Arizona,  is  credited 
with  a  dividend  record  of  $25,000,000,  or  over  eight 
times  the  face  value  of  its  capital  stock. 

The  author  abhors  statistics;  but  that  the  investor 


ROCKS  IN  THE  ROAD  TO  FORTUNE      886 

may  know  that  the  Aladdin-like  stories  of  enormous 
wealth  won  from  real  commercial  mines,  is  not  fic- 
tion he  here  presents  a  list  of  some  of  the  most  noted 
dividend  payers. 

DIVIDENDS. 

If  the  writer  were  to  publish  a  complete  list  of 
the  dividend-paying  mines  of  the  world,  the  reader 
would  become  eye  weary;  the  total  would 
be  so  vast  as  to  be  almost  beyond  credence.  I  can- 
not commence  to  enumerate  the  countless  "small 
commercial  mines  that  are  winning  wealth  for  their 
shareholders,  consequently,  will  only  list  the  more 
prominent  mining  companies  of  America,  and  per- 
haps known  to  the  reader  by  reputation.  I  will  not 
list  those  that  have  paid  millions,  but  which 
are  to-day,  from  several  causes,  not  adding  their 
quota  to  the  world's  supply;  those  that  are  earn- 
ing are  sufficient  to  bear  out  the  writer,  that  the 
general  Eastern  investor  knows  very  little  about 
our  great  commercial  mines — the  men  who  made 
them,  and  who  are  constantly  making  more. 

Dividends. 
Name  of  Company  and  Location.  Total  to 

Date. 

Alaska  Mexican,  g.,  Alaska $     1,806,381 

Alaska  Treadwell,  g.,  Alaska   9,785,000 

Alaska  United,  g.,  Alaska 333,370 

Amalgamated,  c,  Mont 55,942,865 

Am.  Sm.  &  Ref.,  com.,  U.  S 12,625,000 


386    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Am.  Sm.  &  Kef.,  pf.,  U.  S $  26,213,053 

"Am.  Smelters,  pf.  A.,  U.  S 2,195,000 

Am.  Smelters,  pf.  B.,  U.  S 3,750,000 

Anaconda,  c,  Mont 39,050,000 

Arizona,  c,  Ariz 6,182,361 

Atlantic,  c,  Mich 990,000 

Bald  Butte,  g.  s.,  Mont 1,354,648 

Beck  Tunnel,  g.  s.  1.,  IHali 615,000 

Boston  &  Montana,  Mont 49,225,000 

Bull,  Beck.  &  Cham.,  g.,  Utah 2,688,400 

Bunker  Hill  &  Sull.,  Ida 9,876,000 

Butte  Coalition,  c.  s.,  Mont 2,450,000 

Calumet  &  Arizona,  c,  Ariz 9,300,000 

Calumet  &  Hecla,  c,  Mich 105,900,000 

Camp  Bird,  g.  s.,  Colo 4,000,000 

Central  Eureka,  g.,  Cal 778,921 

Columbus  Con.,  c,  Utah 226,832 

Combi'tion  Co.  G'f  d,  Nevada 668,000 

Con.  Mercur,  g.,  Utah 1,205,000 

Copper  Range  Con.,  Mich 6,477,801 

Creede  United,  g.,  Colo 214,053 

Daly  Judge,  g.  s.  1.,  Utah 225,000 

Daly  West,  g.  s.  1.,  Utah 5,877,000 

De  Lamar,  g.  s.,  Ida 2,926,370 

Doe  Run,  1.,  Mo 1,523,630 

Elkton  Con.,  g.,  Colo 1,966,960 

El  Paso,  g.,  Colo 1,022,750 

Fed.  Sm.,  com.,  Idaho 2,618,750 

Federal  Sm.,  pf.,  Idaho 3,281,250 

Findley,  g.,  Colo 325,000 

Frances-Mohawk,  g.,  Nevada 410,000 


ROCKS  IN  THE  ROAD  TO  FORTUNE      387 

Gemini-Keystone,  Utah  $    1,950,000 

Gold  King  Con.,  Colo 1,407,504 

Goldfield  Con.,  go.,  Nevada 1,000,000 

Grand  Central,  g.,  Utah 1,333,000 

Hecla,  s.  1.,  Idaho 1,460,000 

Homestake,  g.,  S.  D 22,313,240 

Horn  Silver,  g.  s.  c.  z.  1.,  Utah 5,642,000 

Inter'l  Nickel,  pf.,  N.  Y 1,048,092 

Iron  Silver,  Colo 4,100,000 

Jamison,  g.,  Cal 294,070 

Kendall,  g.,  Mont 1,130,000 

Lightner,  g.,  Cal 295,694 

Mammoth,  g.  s.  1.,  Utah 2,140,000 

Mary  McKinney,  g.,  Colo 801,765 

Mohawk,  c,  Mich 1,400,000 

Mohawk,  Nevada 4,900,000 

Mont.  Ore  Purch.,  Mont 9,437,274 

Nevada  Hills,  s.  g.,  Nevada 300,000 

New  Century,  z.  1.,  Mo 230,300 

Newhouse  M.  &  S.,  c,  Utah 600,000 

New  Idria,  q.,  Cal 960,000 

New  Jersey  Zinc,  U.  S 8,400,000 

North   Butte,   Mont 5,800,000 

North  Star,  g.,  Cal 1,636,989 

Old  Dominion  Cop.,  Ariz 280,843 

Ophir,  g.  s.,  Nevada 1,797,400 

Osceola,  c,  Mich 7,035,650 

Parrot,  c.  s.,  Mont 6,807,649 

Pennsylvania,  g.,  Cal 284,925 

Portland,  g.,  Colo 7,747,080 

Quartette,  g.  s.,  Nevada 375,000 


388    ROCKS  IN  THE  ROAD  TO  FORTUNE 

Quincy,  c,  Mich |  17,945,44fi 

Rocco  Homest'k,  1.  s.,  Nevada 112,000 

Sacramento,  g.  q.,  Utah 258,000 

St.  Joseph,  1.,  Mo 5,558,357 

Silver  Kin^,  g.  s.  1.,  Utah 11,187,500 

Silver  King  Co't'n,  Utah 187,500 

Shannon,  c,  Ariz 450,000 

Snowstorm,  s.  1.,  Ida 450,000 

Standard  Con.,  g.  s.,  Cal 5,192,641 

Stratton's  Independ.,  Colo 4,895,865 

Swansea,  g.  s.  1.,  Utah 329,500 

Tamarack,  c,  Mich 9,420,000 

Tennessee,  c,  Tenn 1,662,500 

Tomboy,  g.  s.,  Colo 900,000 

Tonopah  of  Nev.,  Nevada 3,500,000 

Tonopah  Belmont,  Nevada 518,003 

Tonopah  Ext'nsion,  Nevada 278,530 

Tonopah  Midway,  Nevada 300,000 

Uncle  Sam,  g.  s.  1.,  Utah 165,000 

United  States,  com.,  Utah 1,147,653 

United  States,  pfd.,  Utah 4,242,146 

United  Cop,  com.,  Mont 5,962,500 

United,  c.  pf.,  Mont 1,500,000 

United,  z.  1.  pf.,  Mo.-Kan 303,006 

United  (Cripple  Creek),  Colo 280,071 

United  Verde,  c, 19,710,322 

U.  S.  Red.  &  Ref.  Pf.,  Colo 1,005,504 

Utah,  g.  (Fish  Springs),  Utah 282,000 

Utah  Con.,  c,  Utah 7,686,000 

Victoria,  Utah,  Utah 177,500 

Vindicator  Con.,  g.,  Colo 1,770,000 


ROCKS  IN  THE  ROAD  TO  FORTUNE       389 

Wolverine,  c,  Mich f  4,500,000 

Work,  g.,  Colo 150,000 

Yankee  Con.,  Utah 157,500 

Yellow  Aster,  g.,  Cal 958,789 

We  are  so  wealthy  in  mines  of  our  own,  that  we 
can  be  generous,  and  present  the  fact  that  the  North 
American  Continent  is  rich  in  other  regions,  there- 
fore I  here  present  a  few  of  the  dividend  payers  of 
Mexico  and  Canada ;  as  it  all  bears  out  the  argument 
that  when  commercially  operated  mines  are  wonder- 
ful profit  producers. 

Name  of  Company  and  Location.  Total  to 

Date. 

Amistad  y  Conc'rdia,  Mex |  258,064 

Batopilas,  Mex 55,784 

Buffalo,  s.,  Ont 162,000 

Coniagas  (Cobalt),  Ont 20,000 

Consolidated  M.  &  S.,  B.  C 781,885 

Crow's  Nest  Pass,  B.  C 2,018,648 

Dos  Estrellas,  g.  s.,  Mex 1,020,555 

El  Oro,  g.  s.,  Mex 4,600,800 

Esperanza,  s.  g.,  Mex 7,233,520 

Granby  Con.,  B.  C 2,968,630 

Greene  Con.  Copper,  Mex 6,137,800 

Greene  Con.  Gold,  Mex 300,000 

Green  Gold  Silver,  pfd.,  Mex 120,000 

Guanajuato,  Mex 74,250 

Guggenheim  Expl.,  Mex 3,960,000 

Kerr  Lake,  s.,  Ont 480,000 


390    ROCKS  IN  THE  ROAD  TO  FORTUNE 

LeKoi  No.  2,  g.,  B.  C $    716,400 

McKinley-Darragh,  s.,  Ont 180,000 

Mex.  Con.  M.  &  S.  Co.,  Mex 600,000 

Mines  Co.  of  Am.,  Mex 2,905,000 

North  Star,  B.  C 351,000 

Penoles,  Mex 8,263,375 

Reco,  g.  s.  1.,  B.  C 327,082 

Silver  Queen,  s.,  Ont 120,000 

Slocan  Star,  B.  C 575,000 

St  Eugene  Con.,  B.  C 402,120 

Tilt  Cove,  c,  N.  F 21,360 

Tretheway,  s.,  Ont 80,000 

Tyee,  c,  B.  C 136,800 

With  the  passing  of  the  sensational  promoter, 
enters  the  commercial  miner,  bringing  his  economies, 
flf^liberate  thought,  and  a  desire  for  net  results; 
the  era  of  the  unsound  has  passed;  it  has  been  found 
weak,  non-profitable;  and  nothing  weak  and  non- 
productive ever  returns  to  favor  with  the  American. 
His  aim  is  upward,  never  dovrn  or  backward.  Each 
dav  brings  clearer  conception  of  the  right,  or  com- 
mercial way.  The  wrecks,  the  ill-advised  efforts  of 
the  past,  that  strew  the  mining  highways,  will  here- 
after be  referred  to  in  jest,  the  same  as  are  old 
speculations  in  visionary  dreams,  South  Sea  Bub- 
bles, Gold  from  the  ocean's  brine,  etc.  As  the  pro- 
cession of  the  skilled  and  enlightened  passes  on, 
they  will  point  to  the  monuments  of  inexperience 
and  folly  as  the  result  of  a  dead  age,  gone,  never 
to  return.     As  we  turn  each  new  page  in  Nature's 


ROCKS  IN  THE  ROAD  TO  FORTUNE       391 

book  of  wonders,  as  we  sink  deeper  into  tlie  gold 
and  silver  arteries  of  the  earth,  exposing  new  and 
more  remarkable  mineral  bearing  formations,  as 
electricity  is  improved  and  applied  to  our  mines, 
mills  and  smelters,  as  the  worthless  ore  of  to-day 
is  made  profitable  to-morrow  by  the  natural  order 
of  improvement  in  extraction  and  treatment,  when 
the  golden  streams  from  our  metallic  veins  are 
cementing  the  foundation  stones  of  even  a  greater 
national  structure  of  wealth  and  power,  when  our 
surplus  metallic  riches  are  being  used  to  enrich 
other  nations,  not  as  biest  with  mineral  wealth,  a 
retrospect  of  the  last  twenty-seven  years  will  cause 
the  remark,  "what  baby  miners  w^e  were  in  1880!" 

I  have  been  informed  that  writers  of  plays  visit 
the  locality  in  which  their  scenes  are  laid;  they 
call  it  "getting  atmosphere."  The  writer  has  by 
a  force  of  circumstances  seen  enough  atmosphere. 
If  lying  out  in  driving  snows :  if  weary  climbing  hills 
in  search  of  mineral  wealth;  if  suffering  from 
hunger  and  thirst:  if  the  digging  of  disappointing 
holes  in  the  earth  under  the  most  adverse  circum- 
stances: if  the  witnessing  of  sorrow:  if  the  personal 
remorse  of  one's  own  mistakes:  if  the  grasping  of 
the  hands  of  dying  comrades,  crushed  by  falling 
timbers:  if  watching  the  lurid  glare  of  the  molten 
slag  at  the  watching  hour — if  all  these  experiences 
can  be  termed  atmosphere,  and  essential  to  good 
reading,  there  is  some  little  hope  for  "Rocks  in  the 
Road  to  Fortune." 

It  is  now  the  hour  of  noon,  on  the  11th  day  of 


392   ROCKS  IN  THE  ROAD  TO  FORTUNE 

March,  as  I  pencil  the  last  hundred  lines  of  this 
volume,  using  a  candle  box  as  a  desk  and  a  time 
book  for  these  notes,  1  am  2,000  feet  deep  in  the 
bowels  of  the  earth,  in  a  great  gold  vein  over  fifty 
feet  wide,  at  the  intersecting  point  of  the  tunnel 
8,000  feet  in  from  the  earth's  surface.  The  hissing 
of  compressed  air,  the  rumble  of  the  electric  trolley 
dragging  its  trains  of  ore  from  the  network  of 
veins  that  lay  9,000  feet  still  further  into  the  gold 
belt,  the  dull  thud  of  dropping  rocks,  that  are  con- 
stantly falling  in  all  mines,  like  the  passing  of 
human  lives;  the  jingling  of  steel  as  a  miner  throws 
down  an  armful  of  drills;  the  clanging  of  the  hoist- 
ing signals  as  a  ton  of  ore  dashes  upward  to  the 
sunlight — all  may  be  called  atmosphere.  Around 
me  are  lying  miners,  some  eating  their  rough  fare, 
others  talking,  others  silently  smoking,  perhaps 
thinking  of  a  little  sun  checked  porch,  vine  covered; 
all  pictures  recalling  roughly  garbed  Titans.  These 
are  real  men,  "world-workers,"  the  kind  that  women 
really  love,  those  who  create  our  wealth  by  honest 
manly  toil,  who,  if  the  world  were  stripped  of  its 
tinsel  and  class,  would  be  the  Kings,  the  real  pro- 
ducers, the  commercial  miner,  whom  I  hope,  that 
great  world  far  to  the  east  of  the  Rocky  Mountains, 
may  in  the  future  know  better. 

THE  END. 


APPENDIX 


APPENDIX 
Common  Terms  used  by  Commercial  Mines. 


Air-Shaft — A  shaft  or  pit  used  expressly  for  ventilation. 

Amalgam — An  alloy  of  quicksilver  with  some  other  metal. 

Amalgamation — Absorption  of  gold  and  silver  by  mercury. 

Apex — The  landing  point  at  the  top  of  a  slope  or  inclined 
plane,  the  knuckle ;  also,  the  top  of  an  anticlinal.  In  the 
United  States  Revised  Statutes,  the  end  or  edge  of  a 
vein  nearest  the  surface, 

Arrastre — A  circular  trough  in  which  drags  are  pulled 
round  by  being  connected  with  a  central  revolving  shaft 
by  an  arm  and  chain.  Used  for  grinding  and  amalga- 
mating ores. 

Assay — The  determination  of  the  quality  and  quantity  of  any 
particular  substance  in  a  mineral. 

Assessment  Work — The  annual  work  necessary  to  hold  a 
mining  claim. 

Back  of  Ore — The  ore  between  two  levels  which  has  to  be 
worked  from  the  lower  level. 

Bar  Mining — The  mining  of  river  bars,  usually  between  low 
and  high  water,  although  the  stream  is  sometimes  de- 
fected and  the  bar  worked  below  water  level. 

Base  Bullion — Lead  combined  with  precious  metals. 

Base  Metal — Metal  not  classed  with  the  precious  metals, 
gold,  silver,  platinum  etc.,  that  are  not  easily  oxidized. 


APPENDIX  III 

Bed  Rock — The  solid  rock  underlying  the  soil,  drift  or  al- 
luvial deposits. 

Black  Sand — Dark  minerals  found  with  alluvial  gold. 

Blast — (i)  The  sudden  rush  of  fire,  gas  and  dust  of  an 
explosion  through  the  workings  and  roadways  of  a 
mine.  (2)  To  cut  or  bring  down  coal,  rocks,  etc.,  by  the 
explosion  of  gunpowder,  dynamite,  etc. 

Blind  Lead,  or  Blind  Lode — ^A  vein  having  no  visible  out- 
crop. 

Blowpipe — An  instrument  for  creating  a  blast  whereby  the 
heat  of  a  flame  or  lamp  can  be  better  utilized. 

Bonanza — An  aggregation  of  rich  ore  in  a  mine. 

Breasting  Ore — The  ore  taken  from  the  face  or  end  of  the 
tunnel. 

Bulkhead — ( i )  A  tight  partition  or  stopping.  (2)  The  end 
of  a  flume  earring  water  for  hydraulicking. 

Cage — A  platform  on  which  mine  cars  are  raised  to  the 
surface. 

Calcining  Furnace — A  furnace  used  for  roasting  ore  in  order 
to  drive  off  certain  impurities. 

Carbonates — Lead  ore.  The  oxide  and  carbonic-acid  com- 
pounds of  lead;  also  applied  to  lead  sulphate. 

Cave,  or  Cave-in — A  caving-in  of  the  roof  strata  of  a  mine, 
sometimes  extending  to  the  surface. 

Charge — ^(i)  The  amount  of  powder  or  other  explosive 
used  in  one  blast  or  shot.  (2)  The  amount  of  flux 
used  in  assaying.  (3)  The  material  fed  into  a  furnace 
at  one  time. 

Chute — A  narrow  inclined  passage  in  a  mine,  down  which 
coal  or  ore  is  either  pushed  or  slides  by  gravity. 

Claim — A  portion  of  ground  staked  out  and  held  by  virtue 
of  a  miner's  right. 


rV  APPENDIX 

Clean-Up — Collecting  the  product  of  a  period  of  work  with 
battery  or  sluice. 

Coarse  Metal — In  copper  smelting-,  the  compound  containing 
the  copper  concentrated  in  it  after  the  first  smelting  to 
get  rid  of  the  bulk  of  the  gangue  in  the  ore. 

Contact — Union  of  different  formations. 

Country  Rock — The  main  rock  of  the  region  through  which 
the  veins  cut,  or  that  surrounding  the  veins. 

Creep — The  gradual  upheaval  of  the  floor  or  sagging  of  the 
roof  of  mine  workings  due  to  the  weighing  action  of  the 
roof  and  a  tender  floor. 

Crevice — A  fissure. 

Crevicing — Picking  out  the  gold  caught  in  cracks  and 
crevice  in  the  rocks  over  which  it  has  been  washed. 

Cribbing — Close  timbering,  as  the  lining  of  a  shaft,  or  the 
construction  of  cribs  of  timber,  or  timber  and  earth  or 
rock  to  support  a  roof. 

Croppings — Portions  of  a  vein  as  seen  exposed  at  the 
surface. 

Cross-Course — A  vein  lying  more  or  less  at  right  angles  to 
the  regular  vein  of  the  district. 

Cross-cut — (i)  A  tunnel  driven  through  or  across  the  mea- 
sures from  one  seam  to  another.  (2)  A  small  passage- 
way driven  at  right  angles  to  the  main  gangway  to  con- 
nect it  with  a  pa  railed  gangway  or  air-course. 

Crusher — A  machine  used  for  crushing  ores  and  rock. 

Dead  Work — Exploratory  or  prospecting  work  that  is  not 
directly  productive.  Brushing  roof,  lifting  bottom, 
cleaning  up  falls,  blowing  rock,  etc. 

Deposit — Irregular  ore  bodies  not  veins.  A  bed  or  any  sedi- 
mentary formation. 


APPENDIX  V 

Diggings — Where  gold  and  other  minerals  are  dug  out  from 

shallow  alluvials. 
Dip — To  slope  downward.    The  inclination  of  strata  with  a 

horizontal  plane.    The  lower  workings  of  a  mine. 
Divide — The  top  of  a  ridge,  hill  or  mountain. 
Drift — (i)  A  horizontal  passage  underground. 
Drill — An  instrtmient  used  in  boring  holes. 
Dry  Amalgamation — Treating  ores  with  hot,  dry  mercury. 
Dry  Ore — Argentiferous  ores  that  do  not  contain  enough 

lead  for  smelting  purposes. 
Dump — A  pile  or  heap  of  ore. 
Dyke,  or  Dike — A  wall  of  ingeneous  rock  passing  through 

strata,  with  or  without  accompanying  dislocation  of  the 

strata. 
Face — The   place  at  which  the   material    is   actually   being 

worked,  either  in  a  breast  or  heading  or  in  longwall. 
False  Set — A  temporary  set  of  timber  used  until  work  is  far 

enough  advanced  to  put  in  a  permanent  set. 
Float — Broken  and  transported  particles  or  boulders  of  vein 

matter. 
Float  Gold — Gold  in  thin  scales,  which  floats  on  water. 
Flour  Gold — The  finest  alluvial  gold. 
Flux — Iron  ore,  limestone  and  sand,  which  are  added  in 

various  proportions  to  the  charge  in  a  furnace  to  make 

the  gangue  melt  up  and  flow  off  easily. 
Foot-Wall — The  lower  boundary  of  a  lode. 
Free  Milling — Ores  requiring  no  roasting  or  chemical  treat- 
ment. 
Gallon's  Frame — The  frame  supporting  a  pulley  over  which 

the  hoisting  rope  passes  to  the  engine. 
Gangue — ^Waste  material  from  lodes. 


VI  APPENDIX 

Grub  Stake — The  mining  outfit  or  supplies  furnished  to  a 
prospector  on  condition  of  sharing  in  his  finds. 

Hanging  Wall — In  metalliferous  mining,  the  stratum  lying 
geologically  directly  above  a  bed  or  vein. 

Horse  Whim — A  vertical  drum  worked  by  a  horse,  for  haul- 
ing or  hoisting.    Called  also  Horse  Gin. 

Incline — Short  for  inclined  plane.  Any  inclined  heading  or 
slope  road  or  track  having  a  general  inclination  or  grade 
in  one  direction. 

Ingot — A  lump  of  cast  metal. 

Jigging — Separating  heavy  from  light  particles  by  agitation 
in  water. 

Leaching — to  dissolve  out  by  some  liquid. 

Little  Giant — The  name  given  to  a  special  sort  of  hydraulic 
nozzle  used  for  sluicing  purposes. 

Lode — Strictly  a  fissure  in  the  country  rock  filled  with 
mineral ;  usually  applied  to  metalliferous  lodes.  In 
general  miners'  usage,  a  lode,  vein  or  ledge  is  a  tabular 
deposit  of  valuable  minerals  between  definite  boundaries. 
Whether  it  be  fissure  formation  or  not  is  not  always 
known,  and  does  not  affect  the  legal  title  under  the 
United  States  Federal  and  local  statutes  and  customs 
relative  to  lodes.  But  it  must  not  be  a  placer,  i.  e.,  it 
must  consist  of  quartz  or  other  rocks  in  place,  and  bear- 
ing valuable  mineral. 

Low  Grade — Not  rich  in  mineral. 

Mill  Run — The  test  of  a  given  quantity  of  ore  by  actual  treat- 
ment in  a  mill. 

Motor — The  vessel  in  which  ore  is  placed  to  be  pulverized 
by  a  pestle. 

Mother  Lode  {Main  Lode) — The  principal  vein  of  any  dis- 
trict. 


APPENDIX  VII 

Ore  Shoot — A  large  and  usually  rich  aggregation  of  mineral 
in  vein.  Distinguished  from  pay  streak  in  that  it  is 
a  more  or  less  vertical  zone  or  chimney  of  rich  vein  mat- 
ter extending  from  wall  to  wall,  and  having  a  definite 
width  laterally. 

Panning,  or  Panning  off — Separating  gold  or  tin  from  its  ac- 
companying minerals  by  washing  off  the  latter  in  a  pan. 

Peter  Out — To  "peter  out"  is  to  thin  out,  or  gradually  de- 
crease in  thickness. 

Pinch — A  contraction  in  the  vein. 

Placer  Mining — Surface  mining  for  gold  where  there  is  but 
little  depth  of  alluvial. 

Prospect — The  name  given  to  underground  workings  whose 
value  has  not  yet  been  made  manifest.  A  prospect  is 
to  mine  what  mineral  is  to  ore. 

Prospecting — Examining  a  tract  of  country  in  search  of 
minerals. 

Roasting — Heating  ores  at  a  temperature  sufficient  to  cause 
a  chemical  change,  but  not  enough  to  smelt  them. 

Rock  Drill — A  rock-boring  machine  worked  by  hand,  com- 
pressed air,  steam  or  electrical  power. 

Shaft — A  vertical  or  highly  inclined  pit  or  hole  made  through 
strata,  through  which  the  product  of  the  mine  is  hoisted, 
and  through  which  the  ventilation  is  passed  either  into 
or  out  of  the  mine.  A  shaft  sunk  from  one  seam  to 
another  is  called  a  "blind  shaft." 

Shift — The  number  of  hours  worked  without  change.  A 
gang  or  force  of  workmen  employed  at  one  time  upon 
any  work,  as  the  day  shift,  or  the  night  shift. 

Skip — A  mine  car.    A  car  for  hoisting  out  of  a  slope. 

Slag — The  liquid  refuse  from  a  smelting  operation,  which 
floats  on  top  of  the  metal. 


VIII  APPENDIX 

Smelting — Method  of  extracting  a  precious  metal  from  its 
ores. 

Specimen — A  picked  piece  of  mineral. 

Spur — A  short  ridge  or  offsetting  pointed  branch  from  a 
main  ridge  or  mountain.  A  short  branch  or  feeder  from 
the  main  lode  of  a  vein. 

Square  Set — A  variety  of  timbering  for  large  excavations. 

Sulphide — A  combination  of  sulphur  and  base. 

Sump,  or  Sumpt — A  catch  basin  into  which  the  drainage  of 
a  mine  flows  and  from  which  it  is  pumped  to  the  surface. 

Tellurides — Ores  of  the  precious  metals  (chiefly  gold)  con- 
taining tellurium. 

Underholding,  Undermining — To  mine  out  a  portion  of  the 
bottom  of  a  seam  or  the  underclay,  by  pick  or  powder, 
thus  leaving  the  top  unsupported  and  ready  to  be  blown 
down  by  shots,  broken  down  by  wedges,  or  mined  with 
a  pick  or  bar. 

Upraise — An  auxiliary  shaft,  a  mill  hole,  or  heading  carried 
from  one  level  up  toward  another. 

Upthrow — A  fault  in  which  the  displacement  has  been  up- 
ward. 

Winch,  or  Windlass — A  hoisting  machine  consisting  of  a 
horizontal  drum  operated  by  crank-arm  and  manual 
labor. 

Winnowing  Gold — Air-blowing.  Tossing  up  dry  powdered 
auriferous  material  in  the  air,  and  catching  the  heavier 
particles  not  blown  away. 

Winze — Interior  shaft  connecting  levels,  sometimes  used  as 
an  ore  chute. 

Zone — The  strike  of  the  mineral  bearing  lodes  or  deposits. 


\    IV 


^ 


THE  LIBRARY 
UNIVERSITY  OF  CALIFORNIA 

Santa  Barbara 


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